Assignment-due on Thursday

Use the following accounts for the journal entry

Chart of Accounts
Acct No. Acct Title The following transaction transpired durin
110 Cash
120 Accounts Receivable Sep. 1
130 Supplies `2
140 Prepaid Insurance `3
150 Prepaid Rent `3

160 Equipment 4
165 Accumulated Depreciation 5
210 Accounts Payable 8
220 Notes Payable 12
230 Interest Payable 14
310 B, Capital 18
320 B, Withdrawal 20
410 Service Revenue 22
510 Salaries Expense 25
520 Supplies Expense 27
530 Rent Expense 28
540 Insurance Expense 29
550 Taxes and Licenses 30
560 Advertising expense 30
570 Utilities Expense
580 Interest Expense
590 Depreciation Prepare the following:
1. Journalize the transaction
2. Posting to the ledger
3. Prepare the unadjusted trial balance
The following transaction transpired during Sep. 2024

Mr. B transfers personal savings amounting to 200,000 cash as initial capital to his auto repair shop
Mr B obtained loan from a bank, evidence by a 12% promissory note; 250,000
Paid 7,000 for business permits
Hired 2 Assitants with 12, 000 monthly salaries.
Purchased Equipment amounting to 400,000 by paying 200,000 cash and the
balance is through a notes payable due on December 31, 2024.
Billed customers for services rendered; 180,000
Received 80,000 from customers for services rendered
Paid employees salaries, 12,000
Purchased supplies on account, 55, 250 (Asset Method)
Render services to customers, 175,000 cash and 37,500 on accounts
Collected accounts from customers on Sep. 5 150,000
Paid 8,000 as advertising expense
Paid insurance for 12 moths 15,000 (use asset method)
Paid rent for 6 months, 30,000 (use asset method)
Received and paid utility bills, 10,000
Withdrew 70,000 for personal use
Paid employee salaries 14,000
Accrued interest amounting to, 5,500

Prepare the following:

1. Journalize the transaction
2. Posting to the ledger
3. Prepare the unadjusted trial balance
al to his auto repair shop

3
Date Accounts Title Debit Credit
`Sep 1 Cash 200,000
B, Capital 200,000

2 Cash 250,000
Notes Payable 250,000

3 Taxes and Licenses 7,000

Cash 7,000

3 No entry

4 Equipment 400,000
Cash 200,000
Notes Payable 200,000

5 Accounts Receivable 180,000

Service Revenue 180,000

8 Cash 80,000
Service Revenue 80,000

12 Salaries Expense 12,000

Cash 12,000

14 Supplies 55,250
Accounts Payable 55,250

18 Cash 175,000
Accounts Receivable 37,500
Service Revenue 212,500

20 Cash 150,000
Accounts Receivable 150,000

22 Advertising Expense 8,000

Cash 8,000

25 Prepaid Insurance 15,000

Cash 15,000

27 Prepaid Rent 30,000

Cash 30,000

28 Utilities Expense 10,000

 Cash 10,000

29 B. Withdrawal 70,000
Cash 70,000

30 Salaries Expense 14,000

Cash 14,000

30 Interest Expense 5,500

Interest Payable 5,500
Use the following accounts for the journal entry
Chart of Accounts
Acct No. Acct Title The following transaction transp
110 Cash
120 Accounts Receivable Sep. 1
130 Supplies `2

150 Equipment 3
210 Accounts Payable 5
220 Notes Payable 10
310 B, Capital 12
320 B, Withdrawal 15
410 Service Revenue 18
510 Salaries Expense 20
520 Supplies Expense 22
530 Rent Expense 25
540 Insurance Expense 27
550 Taxes and Licenses 18
560 Advertising expense 29
570 Utilities Expense 30
580 Interest Expense 30

Prepare the following:

1. Journalize the transaction
2. Posting to the ledger
3. Prepare the unadjusted trial b
The following transaction transpired during Sep. 2024

Mr. B invested 500,000 cash as initial capital to his auto repair shop
Paid 10,000 for business permits
Purchased Equipment amounting to 300,000 by paying 200,000 cash and
the balance is through a notes payable due on December 31, 2024.
Render services to cash customers, 150,000
Render services on account, 120,000
Paid employees salaries, 30,000
Purchased supplies on account, 100,000 (Expense Method)
Render services to customers, 50,000 cash and 80,000 on accounts
Collected accounts from customers on Sep. 10, 100,000
Paid 12,000 as advertising expense
Paid insurance for 12 moths 60,000 (use expense method)
Paid rent for 6 months, 60,000 (use expense method)
Received utility bills, 10,000
Withdrew 50,000 for personal use
Paid employee salaries 30,000
Paid interest amounting to, 2,500

Prepare the following:

1. Journalize the transaction
2. Posting to the ledger
3. Prepare the unadjusted trial balance
Date Accounts Title Debit Credit
Page: 1
`Sep 1 Cash 500,000
B, Capital 500,000

to record initial capital

2 Taxes and Licenses 10,000

Cash 10,000

3 Equipment 300,000
Cash 200,000
Notes Payable 100,000

5 Cash 150,000
Service Revenue 150,000

10 Accounts Receivable 120,000

Service Revenue 120,000

12 Salaries Expenes 30,000

Cash 30,000

15 Supplies Expense 100,000

Accounts Payable 100,000

18 Cash 50,000
Accounts Receivable 80,000
Service Revenue 130,000

20 Cash 100,000
Accounts Receivable 100,000

22 Advertising Expense 12,000

Cash 12,000

25 Insurance Expense 60,000

Cash 60,000

27 Rent Expense 60,000

Cash 60,000

28 Utilities Expense 10,000

Accounts Payable 10,000

29 B, Withdrawals 50,000
Cash 50,000
30 Salaries Expense 30,000
Cash 30,000

Interest Expense 2,500

Cash 2,500
Sep. 1 Mr. B invested 500,000 cash as initial capital to his auto repair shop
`2 Paid 10,000 for business permits
3 Purchased Equipment amounting to 300,000 by paying 200,000 cash and the b
5 Render services to cash customers, 150,000
10 Render services on account, 120,000
12 Paid employees salaries, 30,000
15 Purchased supplies on account, 100,000 (Expense Method)
18 Render services to customers, 50,000 cash and 80,000 on accounts
20 Collected accounts from customers on Sep. 10, 100,000
22 Paid 12,000 as advertising expense
25 Paid insurance for 12 moths 60,000 (use expense method)
27 Paid rent for 6 months, 60,000 (use expense method)
28 Received utility bills, 10,000
29 Withdrew 50,000 for personal use
30 Paid employee salaries 30,000
30 Paid interest amounting to, 2,500
epair shop

00,000 cash and the balance is through a notes payable due on December 31, 2024.

n accounts
B. Auto Repair Shop
Unadjusted Trial Balance
`September 30, 2024
Unadjusted Trial Balance
Acct No. Acct Title Debit
110 Cash 489,000
120 Accounts Receivable 67,500
130 Supplies 55,250
140 Prepaid Insurance 15,000
150 Prepaid Rent 30,000
160 Equipment 400,000
165 Accumulated Depreciation
210 Accounts Payable
220 Notes Payable
230 Interest Payable
310 B, Capital
320 B, Withdrawal 70,000
410 Service Revenue
510 Salaries Expense 26,000
520 Supplies Expense
530 Rent Expense
540 Insurance Expense
550 Taxes and Licenses 7,000
560 Advertising expense 8,000
570 Utilities Expense 10,000
580 Interest Expense 5,500
590 Depreciation
600 Income Summary
Total 1,183,250
nadjusted Trial Balance Income Statement Balance Sheet
Credit Debit Credit Debit
489,000
67,500
55,250
15,000
30,000
400,000

55,250
450,000
5,500
200,000
70,000
472,500 472,500
26,000

7,000
8,000
10,000
5,500

1,183,250 56,500 472,500 1,126,750

Profit (Loss) 416,000
472,500 472,500
Balance Sheet
Credit

55,250
450,000
5,500
200,000

710,750
416,000
1,126,750
 B. Auto Repair Shop
Unadjusted Trial Balance
`September 30, 2024
Unadjusted Trial Balance
Acct No. Acct Title Debit Credit
110 Cash 489,000
120 Accounts Receivable 67,500
BS 130 Supplies 55,250
140 Prepaid Insurance 15,000
150 Prepaid Rent 30,000
160 Equipment 400,000
165 Accumulated Depreciation
210 Accounts Payable 55,250
220 Notes Payable 450,000
230 Interest Payable 5,500
310 B, Capital 200,000
320 B, Withdrawal 70,000
410 Service Revenue 472,500
510 Salaries Expense 26,000
520 Supplies Expense 1
530 Rent Expense 2
540 Insurance Expense 3
income 550 Taxes and Licenses 7,000
Statement 560 Advertising expense 8,000
570 Utilities Expense 10,000
580 Interest Expense 5,500
590 Depreciation 4
600 Income Summary
Total 1,183,250 1,183,250

4
 Adjustments Adjusted Trial Balance Income Statement
Debit Credit Debit Credit Debit Credit
489,000
67,500
1 35,100 20,150
3 1,250 13,750
2 5,000 25,000
400,000
3 1,333 1,333
55,250
450,000
5,500
200,000
70,000
472,500 472,500
26,000 26,000
35,100 35,100 35,150
5,000 5,000 5,000
1,250 1,250 1,250
7,000 7,000
8,000 8,000
10,000 10,000
5,500 5,500
1,333 1,333 5,000

42,683 9 42,683 1,184,583 1,184,583 102,900 472,500

Profit/ (loss) 369,600
472,500 472,500
 Balance Sheet
Debit Credit
489,000
67,500
20,100
13,750
25,000
400,000
5,000
55,250
450,000
5,500
200,000
70,000

1,085,350 715,750
369,600.00
1,085,350 1,085,350
 Post-Closing Trial Balance
Debit Credit
110 Cash 489,000
120 Accounts Receivable 67,500
130 Supplies 20,100
140 Prepaid Insurance 13,750
150 Prepaid Rent 25,000
160 Equipment 400,000
165 Accumulated Depreciation 1,333
210 Accounts Payable 55,250
220 Notes Payable 450,000
230 Interest Payable 5,500
310 B, Capital 503,267
Total 1,015,350 1,015,350
Closing Entries
1) To close Revenue accounts to income summary
Debit Credit
Service Revenue 472,500
Income Summary 472,500

2. To close Expenses accounts to income summary

Income Summary 102,900

Salaries Expense 26000
Supplies Expense 35150
Rent Expense 5000
Insurance Expense 1250
Taxes and Licenses 7000
Advertising expense 8000
Utilities Expense 10000
Interest Expense 5500
Depreciation 5000

3. To close income Summary account to capital account

Income Summary 369600

B. Capital 369600

4. To close withdrawal to capital account

B, Capital 70,000
B, withdrawal 70,000
Income Summary
472,500
102,900 369,600

B, Capital
Bal 200,000
Debit Credit
369600 569,600
70,000 499,600
Acc. No 110 Acc. Title Cash
Date Description JR Debit Credit Balance
Balance -
Sep 1` Initial Investment 1 500,000 500,000
2 payment-permits 1 10,000 490,000
3 downpayment-equipment 1 200,000 290,000
5 revenue 1 150,000 440,000
12 payment-salaries 1 30,000 410,000
18 revenue 1 50,000 460,000
20 Collection-name 1 100,000 560,000
22 payment-ads 1 12,000 548,000
25 payment -isurance 1 60,000 488,000
27 Payment-rent 1 60,000 428,000
29 owner's drawing 1 50,000 378,000
30 payment -salaries 1 30,000 348,000
30 Payment-interest 1 2,500 345,500
Acc. No 120 Acc. Title Accounts Receivable
Date Description JR Debit Credit Balance
Balance -
Sep` 10 Services rendered 1 120,000 120,000
18 customers a, b 1 80,000 200,000
20 Collection-name 1 100,000 100,000

Acc. No 130 Acc. Title Supplies

Date Description JR Debit Credit Balance
Balance -

Acc. No 150 Acc. Title Equipment

Date Description JR Debit Credit Balance
Balance -
`Sep 3 equipment purchased 1 300,000 300,000
 Acc. No 210 Acc. Title Accounts Payable
Date Description JR Debit Credit
Balance
Sep` 15 Supplies 1 100,000
28 Utilities payable 1 10,000

Acc. No 220 Acc. Title Notes Payable

Date Description JR Debit Credit
Balance
`Sep 3 Notes issued- Yokohama 100,000

eceivable
Accounts Payable Acc. No 310 Acc. Title B, Capital
Balance Date Description JR Debit Credit
- Balance
100,000 Sep 1` Initial Investment 1 500,000
110,000

Notes Payable
Balance
-
100,000
Acc. No 320 Acc. Title B, Withdrawals
Date Description JR Debit Credit
Sep 29` Withdrawal 1 50,000
B, Capital Acc. No 410 Acc. Title Service Revenue
Balance Date Description JR Debit Credit
- Sep` 5 Revenue 1 150,000
500,000 10 Revenue on account 1 120,000
18 Revenue 1 130,000

Acc. No 510 Acc. Title Salaries expense

Date Description JR Debit Credit
Sep` 12 Salaries 1 30,000
30 Salaries 1 30,000

B, Withdrawals
Balance
50,000 Acc. No 520 Acc. Title Supplies Expense
Date Description JR Debit Credit
Sep` 15 on account 1 100,000

Acc. No 530 Acc. Title Rent Expense

Date Description JR Debit Credit
Sep` 27 Payment 1 60,000

Acc. No 540 Acc. Title Insurance Expense

Date Description JR Debit Credit
Sep`25 payment 1 60,000

Acc. No 550 Acc. Title Taxes & Licenses

Date Description JR Debit Credit

Sep 2` Payment of bus. Permit 1 10,000

Acc. No 560 Acc. Title Advertsising Expense
Date Description JR Debit Credit
Sep` 22 payment for ads 1 12,000

Acc. No 570 Acc. Title Utilities Expense

Date Description JR Debit Credit
Sep ` 28 On account 10,000

Acc. No 580 Acc. Title Interest Expense

Date Description JR Debit Credit
Sep` 30 Payment 1 2,500
Service Revenue
Balance
150,000
270,000
400,000

Salaries expense
Balance
30,000
60,000

Supplies Expense
Balance
100,000

Rent Expense
Balance
60,000

Insurance Expense
Balance
60,000

Taxes & Licenses

Balance

10,000
Advertsising Expense
Balance
12,000

Utilities Expense
Balance
10,000

Interest Expense
Balance
2,500
 B. Auto Repair Shop B. Auto Repair Shop
Statement of Income Statement of Changes
For the month ended Septemeber 30, 2024 Septemeber 30, 2024

B. Capital, beginning
Service Revenue 472,500 Add: Investments
Less: Expenses Add: Profit for the period
Salaries Expense 26,000 Total
Supplies Expense 35,150 Less: B, withdrawals
Rent Expense 5,000 B. Capital, ending
Insurance Expense 1,250
Taxes and Licenses 7,000
Advertising expense 8,000
Utilities Expense 10,000
Interest Expense 5,500
Depreciation 1,333 99,233
Profit/(loss) 373,267

Prepared by:

Name
Accountant
B. Auto Repair Shop B. Auto Repair Shop
Statement of Changes in Equity Statement of Financial Position
Septemeber 30, 2024 As of Septemeber 30, 2024

beginning 0 Assets
200,000 Current Assets
for the period 373,267 Cash
573,267 Accounts Receivable
thdrawals 70,000 Supplies
, ending 503,267 Prepaid Insurance
Prepaid Rent
Total Current Assets

Non-current Assets
Equipment
Less: Accum Depreciation
Total Assets

Liabilities and Owner's Equity

Current Liabilities
Accounts Payable
Interest Payable
Total Current liabilities
Non-current liabilities
Notes Payable
Owner's Equity
B' capital
Total Liabilities and Owner's Equity
 489,000
67,500
20,100
13,750
25,000
615,350

400,000
1,333 398,667
1,014,017

55250
5500
60750

450000

503,267
1,014,017
Acc. No 110 Acc. Title Cash
Date Description JR Debit Credit Balance
Balance -
`Sep 1 Capital investment 1 200,000 200,000
2 Notes payable 1 250,000 450,000
3 payment-permit 1 7,000 443,000
4 downpayment-equipment 1 200,000 243,000
8 Service Revenues 1 80,000 323,000
12 Payment-salaries 1 12,000 311,000
18 Service Revenues 1 175,000 486,000
20 Collection of A/R 1 150,000 636,000
22 Payment-ads 1 8,000 628,000
25 prepayment-insurance 1 15,000 613,000
27 prepayment-rent 1 30,000 583,000
28 Payment-utilities 1 10,000 573,000
29 B. Withdrawals 1 70,000 503,000
30 Payment-salaries 1 14,000 489,000

Acc. No 120 Acc. Title

Accounts Receivable
Date Description JR Debit Credit Balance
Balance -
`Sep 5 Service Revenue 1 180,000 180,000
18 Service Revenue 1 37,500 217,500
20 Collection 1 150,000 67,500

Acc. No 130 Acc. Title Supplies

Date Description JR Debit Credit Balance
Balance -
`Sep 14 Purchases 1 55,250 55,250

Acc. No 140 Acc. Title Prepaid Isurance

Date Description JR Debit Credit Balance
Balance -
Sep `25 prepayment for 12 months 1 15,000 15,000
Acc. No 150 Acc. Title Prepaid Rent
Date Description JR Debit Credit Balance
Balance -
Sep ` 27 Prepayment for 6 months 1 30,000 30,000

Acc. No 160 Acc. Title Equipment

Date Description JR Debit Credit Balance
Balance -
Sep` 4 Purchased 1 400,000 400,000
 Acc. No 210 Acc. Title Accounts Payable
Date Description JR Debit Credit
Balance
Sep ` 14 A/P for supplies 1 55,250

Acc. No 220 Acc. Title Notes Payable

Date Description JR Debit Credit
Balance
Sep `2 loan from bank 1 250,000
4 for equipment purchased 1 200,000

Acc. No 230 Acc. Title Interest Payable

Date Description JR Debit Credit
Balance
Sep ` 30 Payable to… 1 5,500
eceivable
Accounts Payable Acc. No 310 Acc. Title B, Capital
Balance Date Description JR Debit Credit
- Balance
55,250 Sep ` 1 Initial Investment 1 200,000

Notes Payable
Balance
-
250,000
450,000 Acc. No 320 Acc. Title B, Withdrawals
Date Description JR Debit Credit
Sep 29` Withdrawal 1 70,000

Interest Payable
Balance
-
5,500
B, Capital Acc. No 410 Acc. Title Service Revenue
Balance Date Description JR Debit Credit
- Sep` 5 Revenue 1 180,000
200,000 8 Revenue 1 80,000
18 Revenue 1 212,500

Acc. No 510 Acc. Title Salaries expense

Date Description JR Debit Credit
Sep` 12 Salaries 1 12,000
30 Salaries 1 14,000

B, Withdrawals
Balance
70,000 Acc. No 520 Acc. Title Supplies Expense
Date Description JR Debit Credit

Acc. No 530 Acc. Title Rent Expense

Date Description JR Debit Credit

Acc. No 540 Acc. Title Insurance Expense

Date Description JR Debit Credit

Acc. No 550 Acc. Title Taxes & Licenses

Date Description JR Debit Credit

Sep ` 3 Payment of bus. Permit 1 7,000

Acc. No 560 Acc. Title Advertsising Expense
Date Description JR Debit Credit
Sep` 22 payment for ads 1 8,000

Acc. No 570 Acc. Title Utilities Expense

Date Description JR Debit Credit
Sep ` 28 Payment 10,000

Acc. No 580 Acc. Title Interest Expense

Date Description JR Debit Credit
Sep` 30 Accrued 1 5,500
Service Revenue
Balance
180,000
260,000
472,500

Salaries expense
Balance
12,000
26,000

Supplies Expense
Balance

Rent Expense
Balance

Insurance Expense
Balance

Taxes & Licenses

Balance

7,000
Advertsising Expense
Balance
8,000

Utilities Expense
Balance
10,000

Interest Expense
Balance
5,500