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General Journal: Cash Common Stocks

The document contains a general journal with adjusted entries for John Michel Advertising Co. for January 202X, detailing various transactions including cash inflows and outflows, expenses, and revenues. It includes a trial balance, income statement, statement of retained earnings, and a balance sheet, providing a comprehensive overview of the company's financial position at the end of the month. The net income for the month is reported as $7,950, with retained earnings at $950 after accounting for dividends.

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26 views14 pages

General Journal: Cash Common Stocks

The document contains a general journal with adjusted entries for John Michel Advertising Co. for January 202X, detailing various transactions including cash inflows and outflows, expenses, and revenues. It includes a trial balance, income statement, statement of retained earnings, and a balance sheet, providing a comprehensive overview of the company's financial position at the end of the month. The net income for the month is reported as $7,950, with retained earnings at $950 after accounting for dividends.

Uploaded by

tuan tran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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GENERAL JOURNAL

Adjusted Entries
POST.
DATE DESCRIPTION DEBIT CREDIT DEBIT
REF
202X
1-Jan
1 Cash 50,000
Common stocks 50,000

2 prepaid rent 4,000


Cash 4,000

4 art equipment 21,000


Cash 21,000

5 office equipment 15,000


Cash 7,500
Accounts Payable 7,500

6 art supplies 9,000


office supplies 4,000
Accounts Payable 13,000

8 prepaid insurance 2,400


Cash 2,400

9 Accounts Payable 5,000


Cash 5,000

10 Cash 7,000
advertising revenue 7,000

12 Wages Expense 3,000


Cash 3,000

15 Cash 5,000
Unearned Art Fees 5,000

19 Accounts Receivable 14,000


advertising earned 14,000

26 Wages Expense 3,000


Cash 3,000
POST.
DATE DESCRIPTION DEBIT CREDIT DEBIT
REF

29 Utilities expense 500


Cash 500

30 Telephone expense 350


Accounts Payable 350

31 Devidends 7,000
Cash 7,000

Adjusted entries
31 a Rent expense 2,000
prepaid rent

b Insurrance expense 200


Prepaid Insurance

c Art supplies expense 2,500


Art supplies
Office supplies expense 1,000
office supplies

d Depreciation Expense, Office Equipment 250


Accumulated Depreciation, Office Equipment
Depreciation Expense, Art Equipment 350
Accumulated Depreciation, Art Equipment

e Wages Expense 900


Wages Payable

f Unearned Revenue 2,000


Art Revenue

g Account Receivable 1,000


Advertising Revenue

h Income Taxes Expense 2,000


Income Taxes Payable
ted Entries

CREDIT
CREDIT

2,000

200

2,500

1,000

250

350

900

2,000

1,000

2,000
ASSET = LIABILITIES +
78,000 20,850
Cash Accounts Payable Co
Jan. 01 50,000 Jan. 02 4,000 Jan. 09 5,000 Jan. 05 7,500
10 7,000 04 21,000 Jan. 06 13,000
15 5,000 05 7,500 30 350
08 2,400
09 5,000
12 3,000
26 3,000
29 500 5,000 20,850
31 7,000
62,000 53,400 Bal. 15,850
Jan.
Bal. 8,600 Unearned revenue
Jan. 15 5,000
Accounts Receivable Adve
Jan. 19 14,000

Art Supplies
Jan. 06 9,000 Wa
Jan.
Office Supplies
Jan. 06 4,000
Uti
Prepaid Rent Jan.
Jan. 02 4,000
Tele
Prepaid Insurance Jan.
Jan. 08 2,400

Art Equipment
Jan. 04 21,000
Office Equipment
Jan. 05 15,000
EQUITY
57,150
Common Stock
Jan. 01 50,000

Bal. 50,000

Dividends
31 7,000

Advertising Revenue
Jan. 10 7,000
Jan. 19 14,000

21,000
Wages Expense
12 3,000
26 3,000

Utilities Expense
29 500

Telephone Expense
30 350
ACCOUNT NAME: Cash ACCOUNT No: 101

POST.
DATE DESCRIPTION REF DEBIT CREDIT BALANCE
202X
Jan. 01 50,000 shares of $1 par value common stock J1 50,000 50,000
02 Rents an office, 2-month rent in advance J1 4,000 46,000
04 Purchases art equipment J1 21,000 25,000
05 Purchases office equipment J1 7,500 17,500
08 Pays for a one-year insurance policy J1 2,400 15,100
09 Pays owed to T&L Supply Co J1 5,000 10,100
10 Collects a fee for placing advertisements J1 7,000 17,100
12 Pays the secretary two weeks' wages J1 3,000 14,100
15 Accepts for art work to be done J1 5,000 19,100
26 Pays the secretary two more weeks' wages J2 3,000 16,100
29 Pays the utility bill J2 500 15,600
31 Pays dividends J2 7,000 8,600
JOHN MICHEL ADVERTISING CO.
Trial Balance
Jan 31, 202X
Debit Credit
Cash $ 8,600
Accounts Receivable 14,000
Art Supplies 9,000
Office Supplies 4,000
Prepaid Insurance 2,400
Prepaid Rent 4,000
Art Equipment 21,000
Office Equipment 15,000
Accumulated Depreciation, Office
Equipment $
Accounts Payable 15,850
Unearned Revenue 5,000
Common Stock $ 50,000
Retained Earnings
Dividends 7,000
Advertising Revenue 21,000
Wages Expense 6,000
Utilities Expense 500
Telephone Expense 350
Total $ 91,850 $ 91,850
JOHN MICHEL ADVERTISING CO.
Work Sheet
For the Month Ended Jan 31, 202X
Unadjusted Adjusted
Trial Balance Adjustments Trial Balance
No. Account
Dr Cr Dr Cr Dr
Cash 8,600 8,600
Accounts Receivable 14,000 g) 1,000 15,000
Art Supplies 9,000 c) 2,500 6,500
Office Supplies 4,000 c) 1,000 3,000
Prepaid Insurance 2,400 b) 200 2,200
Prepaid Rent 4,000 a) 2,000 2,000
Art Equipment 21,000 21,000
Office Equipment 15,000 15,000
Accumulated Depreciation, Office Equipment d) 250
Accumulated Depreciation, Art Equipment d) 350
Accounts Payable 15,850
Unearned Revenue 5,000 f) 2,000
Common Stock 50,000
Dividends 7,000 7,000
Advertising Revenue 21,000 g) 1,000
Wages Expense 6,000 e) 900 6,900
Utilities Expense 500 500
Telephone Expense 350 350
Rent Expense a) 2,000 2,000
Insurrance expense b) 200 200
Art supplies expense c) 2,500 2,500
Office Supplies Expense c) 1,000 1,000
Depreciation Expense, Office Equipment d) 250 250
Depreciation Expense, Art Equipment d) 350 350
Wages Payable e) 900
Art revenue f) 2,000
Revenue Receivable -
Income Taxes Expense g) 2,000 2,000
Estimated Income Taxes Payable g) 2,000
Total 91,850 91,850 12,200 12,200 96,350
Net Income
Total
justed
Balance Income Statement Balance Sheet
Cr Dr Cr Dr Cr
8,600 -
15,000 -
6,500 -
3,000 -
2,200 -
2,000 -
21,000 -
15,000 -
250 - 250
350 - 350
15,850 - 15,850
3,000 - 3,000
50,000 - 50,000
7,000 -
22,000 22,000 -
6,900 -
500 -
350 -
2,000 -
200 -
2,500 -
1,000 -
250 -
350 -
900 - 900
2,000 2,000 -
- -
2,000
2,000 2,000
96,350 16,050 24,000 80,300 72,350
7,950 7,950
24,000 24,000 80,300 80,300
JOHN MICHEL ADVERTISING CO.
Income Statement
For Month Ended Jan 31, 202X
Revenues:
Art revenue $ 2,000
Advertising Revenue 22,000
Total Revenue $ 24,000
Expenses:
Wages Expense 6,900
Utilities Expense 500
Telephone Expense 350
Rent Expense 2,000
Insurrance expense 200
Art supplies expense 2,500
Office Supplies Expense 1,000
Depreciation Expense, Office Equipment 250
Depreciation Expense, Art Equipment 350
Income Taxes Expense 2,000
Total Expense 16,050
Net Income $ 7,950
JOHN MICHEL ADVERTISING CO.
Statement of Retained Earnings
Jan 31, 202X
Retained Earnings, Jan. 1, 202X $ -
Net Income 7,950
Subtotal $ 7,950
Less: Dividends 7,000
Retained Earnings, Jan. 31, 202X $ 950
ANSWERING SERVICE, INC.
Balance Sheet
Jan 31, 202X
Assets
Cash 8600
Accounts Receivable 14000
Revenue Receivable 1000
Art Supplies 6500
Office Supplies 3000
Prepaid Insurance 2200
Prepaid Rent 2000
Art Equipment 21,000
Accumulated Depreciation, Art Equipment - 350
Office Equipment 15,000

Accumulated Depreciation, Office Equipment - 250


Total Assets $ 72,700
Liabilities
Accounts Payable 15,850
Unearned Revenue 3,000
Wages Payable 900
Estimated Income Taxes Payable 2,000
Total Liabilities $ 21,750
Stockholder's Equity
Common Stock 50,000
Retained Earnings 950
Total Stockholder's Equity $ 50,950
Total Liabilities and Stockholder's Equity $ 72,700

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