Problem 5A-3
Name: Gergana Dimitrova
Section:
Date: November 22, 2015
PETE’S PLOWING
GENERAL JOURNAL
Page 1
Date
2015
Jan
Account Titles and Description
PR
Debit
3 Cash
Snow Equipment
Pete Mack, Capital
Initial investment of cash and equipment by owner
111
123
311
7,000.00
6,000.00
3 Prepaid Rent
Cash
Rent paid in advance (? Months)
114
111
2,000.00
5 Office Equipment
Accounts Payable
Purchase of equipment from Ling Corp.
121
211
7,200.00
6 Snow Supplies
Cash
Purchase of supplies
115
111
700.00
9 Cash
Plowing Fees
Cash received for services rendered
111
411
15,000.00
12 Pete Mack, Withdrawals
Cash
Personal withdrawals of cash
312
111
1,000.00
20 Accounts Receivable
Plowing Fees
Billed North East Co. for fees earned
112
411
5,000.00
26 Salaries Expense
Cash
Payment of salaries
511
111
1,800.00
27 Accounts Payable
Cash
Paid half the amount owed Ling Corp.
211
111
Credit
3,600.00
13,000.00
2,000.00
7,200.00
700.00
15,000.00
1,000.00
5,000.00
1,800.00
3,600.00
Problem 5A-3
Name:
Section:
Date:
PETE’S PLOWING
GENERAL JOURNAL
Page 2
Date
Account Titles and Description
2015
Jan 30 Advertising Expense
Accounts Payable
Bill received but not paid from Bush Co.
PR
Debit
512
211
900.00
31 Telephone Expense
Cash
Paid telephone bill
513
111
210.00
31 Snow Supplies Expense
Snow Supplies
Snow Supplies used up
515
115
300.00
31 Rent Expense
Prepaid Rent
Rent expired
514
114
600.00
31 Depreciation Exp., Office Equip.
Accum. Depn., Office Equip.
Estimated depreciation of asset
516
122
120.00
31 Depreciation Exp., Snow Equip.
Accum. Depn., Snow Equip.
Estimated depreciation of asset
517
124
100.00
31 Salaries Expense
Accrued Salaries
Accrued salary to January 31
511
212
190.00
31 Plowing Fees
Income Summary
To close income account
411
313
20000.00
31 Income Summary
Salaries Expense
Advertising Expense
Telephone Expense
Snow Supplies Expense
Rent Expense
Depreciation Exp., Office Equip.
Depreciation Exp., Snow Equip.
To close expense accounts
313
511
512
513
515
514
516
517
Credit
4220.00
900.00
210.00
300.00
600.00
120.00
100.00
190.00
20000.00
1,990.00
900.00
210.00
300.00
600.00
120.00
100.00
Problem 5A-3
Name:
Section:
Date:
PETE’S PLOWING
GENERAL JOURNAL
Page 3
Date
Account Titles and Description
2015
Jan 31 Income Summary
Pete Mack, Capital
Net income closed to capital
31 Pete Mack, Capital
Pete Mack, Withdrawals
Close withdrawals into Capital
PR
Debit
313
311
15780.00
311
312
Credit
1,000.00
15,780.00
1,000.00
Problem 5A-3
Name:
Section:
Date:
CASH
Date
2015
Jan
Explanation
3
3
6
9
12
26
27
31
Post
Ref.
GJ1
GJ1
GJ1
GJ1
GJ1
GJ1
GJ1
GJ2
Debit
Credit
7,000.00
2,000.00
700.00
15,000.00
1,000.00
1,800.00
3,600.00
210.00
ACCOUNTS RECEIVABLE
Date
Explanation
2015
Jan 20
Post
Ref.
GJ1
Debit
Credit
5,000.00
2015
Jan
Explanation
3
31
Post
Ref.
GJ1
GJ2
Debit
Credit
2,000.00
600.00
SNOW SUPPLIES
Date
2015
Jan
Explanation
6
31
Post
Ref.
GJ1
GJ2
Debit
Credit
700.00
300.00
OFFICE EQUIPMENT
Date
2015
Jan
Explanation
5
Post
Ref.
GJ1
Debit
7,200.00
Debit
Credit
7,000.00
5,000.00
4,300.00
19,300.00
18,300.00
16,500.00
12,900.00
12,690.00
ACCOUNT NO. 112
Balance
Debit
Credit
5,000.00
PREPAID RENT
Date
ACCOUNT NO. 111
Balance
Credit
ACCOUNT NO. 114
Balance
Debit
Credit
2,000.00
1,400.00
ACCOUNT NO. 115
Balance
Debit
Credit
700.00
400.00
ACCOUNT NO. 121
Balance
Debit
Credit
7,200.00
Problem 5A-3
Name:
Section:
Date:
ACCUMULATED DEPRECIATION, OFFICE EQUIPMENT
Date
Explanation
2015
Jan 31
Post
Ref.
Debit
GJ2
Credit
Date
2015
Jan
Explanation
3
GJ1
Debit
Credit
6,000.00
Explanation
2015
Jan 31
Post
Ref.
Debit
GJ2
Credit
100.00
ACCOUNTS PAYABLE
Date
2015
Jan
Explanation
5
27
30
Post
Ref.
GJ1
GJ1
GJ2
Debit
Credit
7,200.00
3,600.00
900.00
ACCRUED SALARIES
Date
Explanation
2015
Jan 31
Post
Ref.
Debit
GJ2
Credit
190.00
PETE MACK, CAPITAL
Date
2015
Jan
3
31 Closing
31 Closing
Explanation
Post
Ref.
GJ1
GJ3
GJ3
Debit
Credit
13,000.00
15,780.00
1,000.00
Credit
120.00
ACCOUNT NO. 123
Balance
Debit
Credit
6,000.00
ACCUMULATED DEPRECIATION, SNOW EQUIPMENT
Date
Debit
120.00
SNOW EQUIPMENT
Post
Ref.
ACCOUNT NO. 122
Balance
ACCOUNT NO. 124
Balance
Debit
Credit
100.00
ACCOUNT NO. 211
Balance
Debit
Credit
7,200.00
3,600.00
4,500.00
ACCOUNT NO. 212
Balance
Debit
Credit
190.00
ACCOUNT NO. 311
Balance
Debit
Credit
13,000.00
28,780.00
27,780.00
Problem 5A-3
Name:
Section:
Date:
PETE MACK, WITHDRAWALS
Date
Explanation
2015
Jan 12
31 Closing
Post
Ref.
GJ1
GJ3
Debit
Credit
1,000.00
1,000.00
INCOME SUMMARY
Date
Explanation
2015
Jan 31
31
31
Post
Ref.
GJ2
GJ2
GJ3
Debit
Credit
2015
Jan
Explanation
9
20
31 Closing
Post
Ref.
GJ1
GJ1
GJ2
Debit
Credit
Date
Explanation
2015
Jan 26
31 Adjusting
31 Closing
GJ1
GJ2
GJ2
2015
Jan 30
31 Closing
Explanation
Post
Ref.
GJ2
GJ2
20,000.00
15,780.00
0.00
ACCOUNT NO. 411
Balance
Debit
Credit
15,000.00
20,000.00
0.00
20,000.00
Credit
1,800.00
190.00
1,990.00
ADVERTISING EXPENSE
Date
ACCOUNT NO. 313
Balance
Debit
Credit
15,000.00
5,000.00
Debit
Debit
Credit
900.00
900.00
Credit
1,000.00
0.00
20,000.00
SALARIES EXPENSE
Post
Ref.
Debit
4,220.00
15,780.00
PLOWING FEES
Date
ACCOUNT NO. 312
Balance
ACCOUNT NO. 511
Balance
Debit
Credit
1,800.00
1,990.00
0.00
ACCOUNT NO. 512
Balance
Debit
Credit
900.00
0.00
Problem 5A-3
Name:
Section:
Date:
TELEPHONE EXPENSE
Date
Explanation
2015
Jan 31
31 Closing
Post
Ref.
GJ2
GJ2
Debit
Credit
210.00
210.00
RENT EXPENSE
Date
Explanation
2015
Jan 31 Adjusting
31 Closing
Post
Ref.
GJ2
GJ2
Debit
Credit
600.00
600.00
SNOW SUPPLIES EXPENSE
Date
Explanation
2015
Jan 31 Adjusting
31 Closing
Post
Ref.
GJ2
GJ2
Debit
Credit
300.00
300.00
DEPRECIATION EXPENSE, OFFICE EQUIPMENT
Date
Explanation
2015
Jan 31 Adjusting
31 Closing
Post
Ref.
GJ2
GJ2
Debit
Credit
120.00
120.00
DEPRECIATION EXPENSE, SNOW EQUIPMENT
Date
2015
Jan 31 Adjusting
31 Closing
Explanation
Post
Ref.
GJ2
GJ2
Debit
Credit
100.00
100.00
ACCOUNT NO. 513
Balance
Debit
Credit
210.00
0.00
ACCOUNT NO. 514
Balance
Debit
Credit
600.00
0.00
ACCOUNT NO. 515
Balance
Debit
Credit
300.00
0.00
ACCOUNT NO. 516
Balance
Debit
Credit
120.00
0.00
ACCOUNT NO. 517
Balance
Debit
Credit
100.00
0.00
Problem 5A-3
Name:
Section:
Date:
PETE’S PLOWING
WORKSHEET
Account Titles
Cash
Accounts Receivable
Prepaid Rent
Snow Supplies
Office Equipment
Snow Equipment
Accounts Payable
Pete Mack, Capital
Pete Mack, Withdrawals
Plowing Fees
Salaries Expense
Advertising Expense
Telephone Expense
Snow Supplies Expense
Rent Expense
Depreciation Exp., Office Equip.
Accum. Depn., Office Equip.
Depreciation Exp., Snow Equip.
Accum. Depn., Snow Equip.
Accrued Salaries
Net Income
Trial Balance
Adjustments
Adjusted Trial Balance
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
12,690.00
12,690.00
5,000.00
5,000.00
2,000.00
(B) 600.00 1,400.00
700.00
(A) 300.00
400.00
7,200.00
7,200.00
6,000.00
6,000.00
4,500.00
4,500.00
13,000.00
13,000.00
1,000.00
1,000.00
20,000.00
20,000.00
1,800.00
E) 190.00
1,990.00
900.00
900.00
210
210
37,500.00 37,500.00
(A) 300.00
(B) 600.00
C) 120.00
300.00
600.00
120.00
C) 120.00
(D) 100.00
Income Statement
Dr.
Cr.
Balance Sheet
Dr.
Cr.
12,690.00
5,000.00
1,400.00
400.00
7,200.00
6,000.00
4,500.00
13,000.00
1,000.00
20,000.00
1,990.00
900.00
210.00
300.00
600.00
120.00
120.00
100.00
(D) 100.00
100.00
E) 190.00
190.00
1,310.00 1,310.00 37,910.00 37,910.00
120.00
100.00
100.00
190.00
4,220.00 20,000.00 33,690.00 17,910.00
15,780.00
15,780.00
20,000.00 20,000.00 33,690.00 33,690.00
Problem 5A-3
Name:
Section:
Date:
PETE’S PLOWING
INCOME STATEMENT
Revenue:
Plowing Fees
$20,000.00
Operating Expenses:
Salaries Expences
Advertising Expences
Telephone Expences
Snow Supplies Expense
Rent Expense
Depreciation Exp., Office Equip.
Depreciation Exp., Snow Equip.
Total Operating Expences
Net Income
$1,990.00
900.00
210.00
300.00
600.00
120.00
100.00
4,220.00
$15,780.00
PETE’S PLOWING
STATEMENT OF OWNER’S EQUITY
Pete Mack, Capital, Jan. 1, 2015
Net Income for January
Less: Withdrawals for January
Increase in Capital
Pete Mack, Capital, Jan. 31, 2015
$13,000.00
$15,780.00
1,000.00
14,780.00
$27,780.00
Problem 5A-3
Name:
Section:
Date:
PETE’S PLOWING
BALANCE SHEET
ASSETS
Cash
Accounts Receivable
Prepaid Rent
Snow Supplies
Office Equipment
Less: Accumulated Depreciation,
Office Equipment
Snow Equipment
Less: Accumulated Depreciation,
Snow Equipment
Total Assets
LIABILITIES AND OWNER’S EQUITY
$12,690.00 Liabilities
5,000.00 Accounts Payable
$4,500.00
1,400.00 Salaries Payable
190.00
400.00
Total Liabilities
$4,690.00
$7,200.00
120.00
6,000.00
7,080.00
100.00
Owner’s Equity
Pete Mack, Capital
5,900.00
$32,470.00 Total Liabilities and Owner’s Equity
33690
32470
1220
27,780.00
32,470.00
Problem 5A-3
Name:
Section:
Date:
PETE’S PLOWING
POST-CLOSING TRIAL BALANCE
Cash
Accounts Receivable
Prepaid Rent
Snow Supplies
Office Equipment
Snow Equipment
Accounts Payable
Pete Mack, Capital
Pete Mack, Withdrawals
Plowing Fees
Salaries Expense
Advertising Expense
Telephone Expense
Dr.
12,690.00
5,000.00
2,000.00
700.00
7,200.00
6,000.00
Cr.
4,500.00
13,000.00
1,000.00
20,000.00
1,800.00
900.00
210
37,500.00
37,500.00
