Acct 201 JOURNAL ENTRIES LOTS OF TRANSACTIONS PART

Acct 201 JOURNAL ENTRIES – LOTS OF TRANSACTIONS…. PART 2 JUDITH PAQUETTE

Objectives Journal Entries T – Accounts Trial Balance Financial Statements Adjustments T-Accounts Trial Balance Final Financial Statements Closing Entries Post Closing Trial Balance

#6 January 5: Emerald City Graphic Designers takes out a $5, 000 Note Payable in cash, at 12% interest. # DATE Account Titles AND Description 6 1/5/14 Debit Credit

#6 January 5: Emerald City Graphic Designers takes out a Note Payable in cash, at 12% interest. # DATE Account Titles AND Description Debit 6 1/5/14 5, 000 Cash Notes Payable To record receipt of cash for note. Alert: Will require an adjusting JE in future video as supplies are used up. Credit 5, 000

#7 January 10: Emerald City Graphic Designers pays Dakota Art Stores for $800 of the money owed. # DATE Account Titles AND Description 7 1/10/14 Debit Credit

#7 January 10: Emerald City Graphic Designers pays Dakota Art Stores for $800 of the money owed. # DATE Account Titles AND Description Debit 7 1/10/14 Accounts Payable Cash To pay money owed from transaction #5 800 Credit 800

#8 January 11: Emerald City Graphic Designers creates an advertisement for auto repair shop, which runs in the newspaper. They are paid $1, 300 in cash. # DATE 8 1/11/13 Account Titles AND Description Debit Credit

#8 January 11: Emerald City Graphic Designers creates an advertisement for auto repair shop, which runs in the newspaper. They are paid $1, 300 in cash. # DATE Account Titles AND Description 8 1/11/13 Cash Service Revenue To record advertisement revenue Debit Credit 1, 300

#9 January 15: Emerald City Graphic Designers accepts an advance of $900 for design work to be done for Joe’s Organic Groceries by the next month or sooner. # DATE Account Titles AND Description 9 1/15/14 Debit Credit

#9 January 15: Emerald City Graphic Designers accepts an advance of $900 for design work to be done for Joe’s Organic Groceries by the next month or sooner. # DATE Account Titles AND Description Debit 9 1/15/14 Cash 900 Unearned Revenue Advance from a customer Alert: Will require an adjusting JE in future video after service is completed. Credit 900

#10 January 19: Emerald City Graphic Designers creates and delivers advertising posters to Gengki Sushi. The fee, $4, 700 is billed but not paid. # DATE Account Titles AND Description 10 1/19/14 Debit Credit

#10 January 19: Emerald City Graphic Designers creates and delivers advertising posters to Gengki Sushi. The fee, $4, 700 is billed but not paid. # DATE Account Titles AND Description Debit 10 1/19/14 Accounts Receivable Service Revenue To record service provided and billed. 4, 700 Credit 4, 700

#11 January 29: Emerald City Graphic Designers pays its administrative assistant $3, 600 for his four weeks’ salary. # DATE Account Titles AND Description 11 1/29/14 Debit Credit

#11 January 29: Emerald City Graphic Designers pays its administrative assistant $3, 600 for his four weeks’ salary. # DATE Account Titles AND Description Debit 11 1/29/14 Salary Expense Cash To record payment of salary. 3, 600 Credit 3, 600

#12 January 30: Emerald City Graphic Designers receives, but does not pay, the telephone bill of $250. The bill is for service provided in January. # DATE Account Titles AND Description 12 1/30/14 Debit Credit

#12 January 30: Emerald City Graphic Designers receives, but does not pay, the telephone bill of $250. The bill is for service provided in January. # DATE Account Titles AND Description Debit 12 1/30/14 Telephone Expense Accounts Payable To record phone bill expense incurred. 250 Credit 250

#13 January 31: Emerald City Graphic Designers declared and paid a $600 dividend. # DATE 13 1/31/14 Account Titles AND Description Debit Credit

#13 January 31: Emerald City Graphic Designers declared and paid a $600 dividend. # DATE Account Titles AND Description Debit 13 1/31/14 Dividends Cash To pay dividend. 600 Credit 600

T- Accounts Post your entries Note the transaction number alongside Calculate the ending balance and put it on the correct side (debit or credit side).

Here are some of the T accounts Emerald City Graphic Designers T Accounts Jan 1 -31, 2014 T accounts for Big Problem CASH 1 8 9 6 Accounts Receivable 75, 000 1, 300 900 5, 000 4, 400 2, 000 2 3 800 3, 600 7 11 600 13 10 Supplies 4, 700 5 1, 550 70, 800 2 Prepaid Rent 4, 400 3 Equipment 5, 600 Accumlated Deprec. Notes Payable Accounts Payable 5, 000 6 Unearned Revenue 7 800 Salaries Payable 900 9 Interest Payable 3, 600 1, 550 250 4, 600 3 5 12

Here are the rest of the T accounts Common Stock 75, 000 1 Service Revenue 1, 300 7 4, 700 9 6, 000 Retained Earnings Salaries Expense 10 3, 600 Dividends 12 600 11 Telephone Exp 250

Trial Balance Now…. TRANSFER the ending balance over to the Trial Balance. Note that an account has either a Debit or Credit balance, NOT BOTH.

Emerald City Graphic Designers TRIAL BALANCE - before adjustments As of: January 31, 2014 Account Debit Cash Accounts Receivable Advertising Supplies Prepaid Rent Prepaid Insurance Equipment Accumulated Depreciation Notes Payable Accounts Payable Interest Payable Unearned Revenue Salaries Payable Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Telephone Expense Supplies Expense Rent Expense Insurance Expense Interest Expense Depreciation Expense Credit $70, 800 4, 700 1, 550 4400 5, 600 5, 000 4, 600 900 75, 000 6, 000 3, 600 250 $91, 500

End of Journal Entries Next video: ADJUSTMENTS!