Charts of Accounts

Haircutting Business
For the Month of August
Number Description Account type Financial Statement
Cash Asset Balance Sheet
Account Receivable Asset Balance Sheet
Prepaid Expenses Asset Balance Sheet
Inventory Asset Balance Sheet
Fixed Assets Asset Balance Sheet
Accumulated Depreciation Asset Balance Sheet
Other Assets Asset Balance Sheet
Account Payable Liabilities Balance Sheet
Accrued Liabilities Liabilities Balance Sheet
Taxes Payable Liabilities Balance Sheet
Notes Payable Liabilities Balance Sheet
Common Stock Owner's Equity Balance Sheet
Retained Earnings Owner's Equity Balance Sheet
Additional Paid in Capital Owner's Equity Balance Sheet
Revenue Revenue Income Statement
Sales returns and allowances Revenue Income Statement
Cost of Goods Sold Expense Income Statement
Advertising Expense Expense Income Statement
Bank Fees Expense Income Statement
Depreciation Expense Expense Income Statement
Payroll Expense Expense Income Statement
Rent Expense Expense Income Statement
Supplies Expense Income Statement
Utilities Expense Expense Income Statement
Wages Expense Expense Income Statement
Other Expense Other Income Statement
General Journal Enteries
Haircutting Business
General Journal For the Month of August
Date Account title PR Debit Credit
1-Aug Cash 3000
Store Equipment 15000
S. Workman, Capital 18000

2-Aug Furniture 600

Cash 600

3-Aug Rent Expense 500

Cash 500

4-Aug Store Equipment 1200

Note Payable 1200

15-Aug Cash 825

Haircutting Service Revenue 825

15-Aug Accounts Receivable 100

Haircutting Service Revenue 100

17-Aug Cash 100

Account Receivable 100

17-Aug Wages Expense 125

Cash 125

31-Aug Cash 930

Haircutting Services Revenue 930

31-Aug Note Payable 400

Cash 400

31-Aug S. Workman, Withdrawals 900

Cash 900
Narration

ss

Owner's Invested Cash and Equipment

Purchased Furniture For Cash

Prepaid Rent For August

Purchased Additional Equipment on Credit

Cash Receipts From 10 Days of Operations

To Record Revenue For Services Provided OnAccount On Account

To Record Cash Received As Payment onAccount

Paid Wages To Assistant

Cash Receipts From Second Half of August

Paid An Installment On The Note Payable

Cash Withdrawal By Owner

a. On August 1, Workman invested $3000 cash and $15000 of equipment in Expressions
b. On August 2, Expressions paid $600 Cash for Furniture for the shop
c. On August 3, Expressions paid $500 cash to rent space in a strip mall for August
d. On August 4, it purchased $1200 of equipment on credit for the shop (using a long-term note payable)
e. On August 5, Expressions opened for business. Cash Received from services provided in the first week and a half of business
f. On August 15, it provided $100 of haircutting services on account.
g. On August 17, it recevied a $100 check for services previously rendered on account.
h. On August 17, it paid $125 to an assistant for working during the grand opening.
i. Cash received from services provided during the second half of August is $930.
j. On August 31, it paid a $400 installment toward Principal on the note payable entered into on August 4.
k. On August 31, Workman made a $900 cash withdrawal for personal use
rst week and a half of business ( ended August 15) is $825.
 General Ledger
Cash S. Workman Capital
Date PR Debit Credit Balance Date PR Debit
1-Aug 3000 3000 1-Aug
2-Aug 600 2400
3-Aug 500 1900 S.Workman Withdrawals
15-Aug 825 2725 Date PR Debit
17-Aug 100 2825 31-Aug 900
17-Aug 125 2700
31-Aug 930 3630 Haircutting Services Revenue
31-Aug 400 3230 Date PR Debit
31-Aug 900 2330 15-Aug
15-Aug
Accounts Receivable 31-Aug
Date PR Debit Credit Balance
15-Aug 100 100 Wages Expense
17-Aug 100 0 Date PR Debit
17-Aug 125
Furniture
Date PR Debit Credit Balance Rent Expense
2-Aug 600 600 Date PR Debit
3-Aug 500
Store Equipment
Date PR Debit Credit Balance
1-Aug 15000 15000
4-Aug 1200 16200

Note Payable
Date PR Debit Credit Balance
4-Aug 1200 1200
31-Aug 400 800
 Credit Balance
18000 18000

hdrawals
Credit Balance
900

vices Revenue
Credit Balance
825 825
100 925
930 1855

Credit Balance
125

Credit Balance
500
 Trial Balance
For the Month of August
Accounts Debit Credit
Cash $2,330
Accounts Receivable 0
Furniture 600
Store Equipment 16200
Note Payable $800
S.Workman Capital 18000
S.Workman Withdrawals 900
Haircutting Services Revenue 1855
Wages Expense 125
Rent Expense 500
Totals $20,655 $20,655
 Income Statement
For the Month Ended August
Debit Credit
Revenues
Haircutting Services Revenue $1,855

Operating Expenses
Rent expense $500
Wages expense 125
Total expenses 625

Net Income $1,230

 Statement of Owner's Equity
For the Month Ended August

S. Workman, Capital, August 1 $0

Plus: Investment by Owner $18,000
Net Income 1230 19230

19230
Less: Withdrawals by owner 900
S. Workman Capital , August 31 $18,330
 Balance Sheet
For the Month Ended August 31

Assets Liabilities and Owner's equity

Cash $2,330 Liabilities
Furniture 600 Note Payable
Store Equipment 16200
Owner's Equity
S. Workman, Capital

Total Assets $19,130 Total liabilities and Owner's Equity

er's equity

$800

18330

$19,130