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    Accounting Chapter 3

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    Huy Nguyễn Ngọc
    1. The business purchased land, buildings, coffee roasting and office equipment using a combination of the owner's capital contribution and accounts payable. 2. Revenue was generated from coffee sales and some accounts payable were paid in cash. 3. Expenses such as wages, advertising and insurance were paid, the owner took a cash withdrawal, and prepaid insurance was purchased.

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    Accounting Chapter 3

    Uploaded by

    Huy Nguyễn Ngọc
    45 views14 pages
    1. The business purchased land, buildings, coffee roasting and office equipment using a combination of the owner's capital contribution and accounts payable. 2. Revenue was generated from coffee sales and some accounts payable were paid in cash. 3. Expenses such as wages, advertising and insurance were paid, the owner took a cash withdrawal, and prepaid insurance was purchased.

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    Accounting-Chapter-3

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    1. The business purchased land, buildings, coffee roasting and office equipment using a combination of the owner's capital contribution and accounts payable. 2. Revenue was generated from coffee sales and some accounts payable were paid in cash. 3. Expenses such as wages, advertising and insurance were paid, the owner took a cash withdrawal, and prepaid insurance was purchased.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    45 views14 pages

    Accounting Chapter 3

    Uploaded by

    Huy Nguyễn Ngọc
    1. The business purchased land, buildings, coffee roasting and office equipment using a combination of the owner's capital contribution and accounts payable. 2. Revenue was generated from coffee sales and some accounts payable were paid in cash. 3. Expenses such as wages, advertising and insurance were paid, the owner took a cash withdrawal, and prepaid insurance was purchased.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
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    1.

    Invoiced a client for providing advice on current employment legislation, $2400


    Asset = Liabilities + Equity
    Cash Capital
    c Dr Cr

    2. Paid salaries to staff, $3600.


    Asset = Liabilities + Equity
    Cash Capital
    e Cr Dr

    3. Paid an annual subscription for access to an online data base of employment legislation until the end of Januar
    Asset = Liabilities + Equity
    Cash (Cr)
    a Equipment (Dr)

    4. Received $6000 from a client for employing staff for them in January.
    Asset = Liabilities + Equity
    Cash
    a Dr + Cr

    5. M. Massenburg invested a further $20 000 additional capital into the business to ensure it has sufficient cash to contin
    Asset = Liabilities + Equity
    Cash Capital
    c Dr Cr

    6. Purchased new office furniture and equipment on credit for $12 500
    Asset = Liabilities + Equity
    Equipment A/P
    b Dr Cr

    7. Invoiced a client for $7000 for providing advice regarding an industrial dispute they had with their employe
    Asset = Liabilities + Equity
    Cash Capital
    c Dr Dr

    8. Paid $720 electricity account the day the account was received.
    Asset = Liabilities + Equity
    Cash Capital
    e Cr Dr

    9. Paid the firm’s lawyers for an account received from them in December for receiving legal
    advice, $7100.
    Asset = Liabilities + Equity
    Cash A/P
    d Cr Dr
    10. Paid for the equipment purchased in (6).
    Asset = Liabilities + Equity
    Cash A/P
    d Cr Dr

    11. M. Massenburg withdrew $1200 from the business bank account for personal use
    Asset = Liabilities + Equity
    Cash Capital
    e Cr Dr
    slation until the end of January 2017

    t has sufficient cash to continue operations.

    e they had with their employees.

    received.

    mber for receiving legal


    nt for personal use
    Ledger Normal balance

    1 Service Vehicles Asset Dr


    2 Repairs Expense Expense Dr
    3 Prepaid insurance Asset Dr
    4 Accounts Payable Liabilities Cr
    5 Unearned Services Fees Liabilities Cr
    6 Telephone expense Expense Dr
    7 Accounts Receivable Asset Dr
    8 Electrical supplies Asset Dr
    9 Drawings Equity Dr
    10 GST payable Liabilities Cr
    11 GST Receivable Asset Dr
    12 Mortgage payble Liabilities Cr
    13 Interest revenue Income Cr
    14 Capital Equity Cr
    15 Electrical services revenue Income Cr
    Statement

    Balance Sheet
    Income Statement
    Balance Sheet
    Balance Sheet
    Balance Sheet
    Income Statement
    Balance Sheet
    Balance Sheet
    Balance Sheet
    Balance Sheet
    Balance Sheet
    Balance Sheet
    Income Statement
    Balance Sheet
    Income Statement
    No Account Title Ledger
    1 Lenny Linnehan, Drawings Equity
    2 Equipment Asset
    3 Account Payable Liability
    4 Account Receivable Asset
    5 Equipment Asset
    6 GST Payable Liability
    7 Loan Payable Liability
    8 Rent payable Liability
    9 Supplies Asset
    10 Prepaid Insurance Asset
    Debit Credit

    DEC 1 Hair dressing Equipment 65000


    Cash at bank 5000
    Account payable 60000
    (Purchasing new hair dressing E for
    cash, on credit)
    3 H, Bouffant, Drawings 1200
    Cash at bank 1200
    (Cash withdrawn by owners
    8 Salaries Expense 6800
    Cash at bank 6800
    (Salary paid)
    14 Advertising Expense 800
    Cash at bank 800
    (Cash paid for advertising on local News)
    19 Cash at bank 540
    Account receivable 540
    (Cash from credit customers)
    23 Account payable 3700
    Cash at bank 3700
    (Paid for equipment purchased on credits)
    30 Cash at bank 44800
    Account payable 11200
    Hairdressing Revenue 56000
    (Earned revenue)
    Debit Credit

    JUNE 1 Cash at bank 120000


    M,Ting, Capital 120000
    Cash contributed by owner
    2 Office quipment 36000
    Cash at bank 36000
    Equipment purchased for cash
    3 No transaction
    6 No transaction
    15 Cash at bank 10000
    Account payable 4200
    Commision payable 5800
    (Cash received as part of payment for hotel and airlines
    22 Account payable 4200
    Cash at bank 4200
    (Airline payment on cash)
    25 Commission payable 5800
    Cash at bank 5800
    (Cash paid to hotel)
    30 Wage expense 16000
    Cash at bank 16000
    (Cash pain to the assistant)
    Debit Credit
    a,

    DEC 2 Land 1200000


    Building 1000000
    Coffee roasting equipment 420000
    Office equipment 60000
    Account payable 30000
    M.Macchiato, capital 2650000
    (Assets and Liability contributed by owner)
    5 Roasting equipment 160000
    Account payable 160000
    (Roasting equipment purchased on credit)
    6 Cash at bank 220000
    Coffee Sales 220000
    (Cash from coffee sales)
    12 Account payable 30000
    Cash at bank 30000
    (Account payable of roasting equipment paid on cash)
    14 Prepaid Insurance 6000
    Cash at bank 6000
    (Insurance for the year paid in advance on cash)
    18 Advertising Expense 8000
    Account payable 8000
    (Advertising for the holiday)
    23 Cash at bank 46000
    Coffee Sales 46000
    (Cash from coffee sales during the holidays)
    30 M,Macchiato, Drawings 8000
    Cash at bank 8000
    (Cash withdrawn by owner)
    b,
    Cash at bank
    Dec Date Explanation Amount
    6 Coffee Sales 220000
    23 Coffee Sales 46000

    266000
    31 Balance b/d 222000

    Land
    Dec Date Explanation Amount
    2 M.M Capital 1200000
    Building
    Dec Date Explanation Amount
    2 M.M Capital 1000000
    Coffee Roasting Equipment
    Dec Date Explanation Amount
    2 M.M Capital 420000
    5 Account payable 160000
    580000
    31 Balance b/d 580000
    Office Equipment
    Dec Date Explanation Amount
    2 M.M Capital 60000
    Prepaid Insurance
    Dec Date Explanation Amount
    14 Cash at bank 60000
    Advertising Expense
    Dec Date Explanation Amount
    18 Account payable 8000
    Michael Macchiato, Drawings
    Dec Date Explanation Amount
    30 Cash at bank 8000
    Michael Macchiato, Capitals
    Dec Date Explanation Amount
    Coffee Sales
    Dec Date Explanation Amount

    31 Balance b/d 266000


    Account payable
    Dec Date Explanation Amount
    12 Cash at bank 30000
    31 Balance b/d 168000
    Cash at bank
    Date Explaination Amount
    12 Ac/P 30000
    14 Prepaid insurance 6000
    30 M.M, Drawings 8000

    31 Balance c/d 222000


    266000

    Land
    Date Explaination Amount

    Building
    Date Explaination Amount

    Roasting Equipment
    Date Explaination Amount

    31 Balance c/d 580000


    ffice Equipment
    Date Explaination Amount

    epaid Insurance
    Date Explaination Amount

    ertising Expense
    Date Explaination Amount

    Macchiato, Drawings
    Date Explaination Amount

    Macchiato, Capitals
    Date Explaination Amount
    Coffee Sales
    Date Explaination Amount
    6 Cash at bank 220000
    23 Cash at bank 46000
    266000
    31 Balance c/d 266000
    count payable
    Date Explaination Amount
    2 M.M, Capital 30000
    5 Roasting Equipment 160000
    18 Advertising Ex 8000
    198000
    31 Balance c/d 168000

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