Ex.
1 Transactions for the Mariam Company for the month of October are presented
below.
1/10. Invested an additional $180,000 cash in the business.
2/10. Purchased land costing $80,000 for cash.
3/10. Purchased equipment costing $18,000 for $10,000 cash and the remainder on credit.
4/10. Purchased supplies on account for $7,000.
5/10. Paid $10,000 for a one-year insurance policy.
6/10. She hires five employees to begin work on May 2. Each employee is to receive a weekly
salary of $ 500 for a 5-day work week, payable every 2 weeks-first payment made on May 16.
7/10. Received $20,000 cash for services performed.
8/10. Received $45,000 for services previously performed on account.
9/10. Paid wages to employees for $25,000.
10/10. Exchange the manager of department A to the department D.
11/10. Mariam withdrew $15,000 cash from the business.
12/10. Paid $5,000 for equipment costing transaction 3.
13/10. Purchased car costing $30,000 for $20,000 cash and the remainder by signing a 3-
month note payable.
Instructions
Journalize each transaction and ending balance of cash & Accounts Payable.
The answer
1/10. Cash ............................................................................................... 180,000
Mariam, Capital ....................................................................
180,000
2/10. Land ............................................................................................... 80,000
Cash ....................................................................................... 80,000
3/10. Equipment ...................................................................................... 18,000
Cash ........................................................................................ 10,000
Accounts Payable ................................................................... 8,000
4/10. Supplies .......................................................................................... 7,000
Accounts Payable ................................................................... 7,000
5/10. Prepaid Insurance ........................................................................... 10,000
Cash .......................................................................................... 10,000
6/10. Not recorded
7/10. Cash ............................................................................................... 20,000
Service Revenue .................................................................... 20,000
8/10. Cash ............................................................................................... 45,000
Accounts Receivable .............................................................. 45,000
9/10. Wages Expense .............................................................................. 25,000
Cash ........................................................................................ 25,000
10/10. Not recorded
11/10. Mariam, Drawing ....................................................................... 15,000
Cash ..................................................................................... 15,000
12/10. Accounts Payable ......................................................................... 5,000
Cash .................................................................................... 5,000
13/10. Car ................................................................................... 30,000
Cash ..................................................................................... 20,000
note Payable ........................................................................ 10,000
Cash
DR CR
(1/10) 180,000 (2/10) 80,000
(7/10) 20,000 (3/10) 10,000
(8/10) 45,000 (510) 10,000
(9/10) 25,000
(11/10) 15,000
(12/10) 5,000
(13/10) 20,000
Ending balance 80,000
Accounts Payable.
DR CR
(12/10) 5,000 (3/10) 8,000
(4/10) 7,000
Ending balance 10,000
Ex.2 The following some Transactions of Ahmed Company for the month of October 2013.
The Beginning balance of: Account receivable $8000, Ahmed’s capital $50000 ,
land $32000, account payable $15000, cash $25000.
1/10 Invested an additional $40,000 cash in the business.
2/10 Purchased land costing $28,000 for cash.
3/10 Purchased equipment costing $8,000 for $4,000 cash and the remainder on credit.
4/10 Purchased supplies on account for $800.
5/10 Paid $1,000 for a one-year insurance policy.
6/10 Received $2,000 cash for services performed.
7/10 Received $4,000 for services previously performed on account.
8/10 Paid wages to employees for $2,500.
9/10 Ahmed withdrew $6000 cash from the business.
10/10 paid 1,900 cash for previously Purchased equipment(Transaction No. 3)
Instructions
Prepare Journal entries to each transaction .
compute ending balance of: Ahmed’s capital, land, cash & Accounts Payable by using T
account..
The answer
1/10 Cash ...................................................................................... 40,000
Ahmed’s capital............................................................... 40,000
2/10 Land ...................................................................................... 28,000
Cash .......................................................................... 28,000
3/10 Equipment ............................................................................. 8,000
Cash ........................................................................ 4,000
Accounts Payable .................................................... 4,000
4/10 Supplies ................................................................................. 800
Accounts Payable ..................................................... 800
5/10 Prepaid Insurance .................................................................. 1,000
Cash ......................................................................... 1,000
6/10 Cash ...................................................................................... 2,000
Service Revenue ...................................................... 2,000
7/10 Cash ...................................................................................... 4,000
Accounts Receivable ................................................ 4,000
8/10 Wages Expense .................................................................... 2,500
Cash ....................................................................... 2,500
9/10 Ahmed, Drawing ..................................................................... 600
Cash .......................................................................... 600
10/10 Accounts Payable ................................................................. 1,900
Cash .......................................................................... 1,900
Ahmed’s capital
Debit Credit
Beginning balance 50,000
1/10 40,000
Ending balance 90,000
Total 90,000 Total 90,000
Ending balance 90,000
Land
Debit Credit
Beginning balance 32000
1/10 28000
Ending balance 60,000
Total 60,000 Total 60,000
Ending balance 50,000
Cash
Debit Credit
Beginning balance 25000 2/10 28000
1/10 40000 3/10 4000
6/10 2000 5/10 1000
7/10 4000 8/10 2500
9/10 600
10/10 1900
Ending balance 33,000
Total 71,000 Total 71,000
Ending balance 33,000
Accounts Payable
Debit Credit
10/10 1900 Beginning balance 15000
3/10 4000
4/10 800
Ending balance 17,900
Total 19,800 Total 19,800
Ending balance 17,900
