Duvall Reading Room Quiz, March 28
Business Transactions

    Chart of Accounts:
 

110  Cash
120  Accts. Receivable--Steve Stone
130  Supplies--Office
140  Computer Equipment
 
210  Notes Payable--Bank of America
 
310  Steve Jackson, Capital
320  Steve Jackson, Drawing
 
410  Sales
510  Purchases
 
610  Advertising Expense
620  Rent Expense
630  Miscellaneous Expense

Date

Transaction
May  5 Paid $230 to advertise a book sale in the King County Journal. Check 21 (C21)
6 Received $1,000 in book store sales for the day.  Tape 506 (T506)
7 Paid $300 to Steve Jackson for his personal use. Check 22 (C22)
8 Sold some office supplies that you decided you will not be able to use, $50. Receipt 3 (R3)

9

Paid $50 to have a book shelf repaired that is used in your store. Check 23 (C23)
 
 


                                                                    Accounting Quiz, March 28
                                    General Journal                                            Page  1

Date

Item

Doc.
No.

Post
Ref.

Debit

Credit

2008
May

5

Advertising Expense

C21

610   2 3 0 --          
          Cash   110             2 3 0 --
  6 Cash     1 0 0 0 --          
          Sales               1 0 0 0 --
  7 Steve Jackson, Drawing       3 0 0 --          
          Cash                 3 0 0 --
  8 Cash         5 0 --          
          Supplies--Office                   5 0 --
  9 Miscellaneous Expense         5 0 --          
          Cash                   5 0 --
                             
   

(always record debits before credits)

                       
                             

                         
 

Debit/Credit Key to Recording Your Entries

Account Type Increase Decrease
Assets (100)--something having value for the
                       company
Debit Credit
Liabilities (200)--when the company owes
                       money
Credit Debit
Owner's Equity/Capital (300)--owner's
                       value in the company
Credit Debit
Owner's Drawing (300)--when the owner
                       takes cash or items from the
                       company for personal use
Debit Credit
Revenue (we title this Sales) (400)--your
                       normal source of making money
Credit Debit
Purchases  (500)--when you buy merchandise
                       that you will then sell to make a
                       profit.
Debit Credit
Expenses (600)--short-term expenditures
                      for the purpose of generating
                      revenue
Debit Credit



To general journal
                                                                       General Ledger

Cash  (asset accounts start with "1")     Account  110
 
Date
 
Item
Post
Ref.
 
Debit
 
Credit
Balance
Debit                      Credit
2008
May
1 Balance                       10 0 0 0 --          
  5   G1             2 3 0 -- 9 7 7 0 --          
                                               


 

Accounts Receivable--Steve Stone     Account  120
 
Date
 
Item
Post
Ref.
 
Debit
 
Credit
Balance
Debit                      Credit
2008
May
1 Balance                       3 0 0 0 --          
                                               
                                               

 

Supplies--Office     Account  130
 
Date
 
Item
Post
Ref.
 
Debit
 
Credit
Balance
Debit                      Credit
2008
May
1 Balance                       2 5 0 0 --          
                                               
                                               

 

Computer Equipment       Account  140
 
Date
 
Item
Post
Ref.
 
Debit
 
Credit
Balance
Debit                      Credit
2008
May
1 Balance                       6 3 0 0 --          
                                               
                                               

 

Notes Payable--Bank of America(liability accounts start with "2")     Account  210
 
Date
 
Item
Post
Ref.
 
Debit
 
Credit
Balance
Debit                      Credit
2008
May
1                                   15 0 0 0 --
                                               
                                               


 

Steve Jackson, Capital  (capital accounts start with "3")     Account  310
 
Date
 
Item
Post
Ref.
 
Debit
 
Credit
Balance
Debit                      Credit
2008
May
1 Balance                                 8 7 1 0 --
                                               
                                               
                                               
                                               
                                               
                                               
                                               

 

Steve Jackson, Drawing     Account  320
 
Date
 
Item
Post
Ref.
 
Debit
 
Credit
Balance
Debit                      Credit
2008
May
1                           6 0 0 --          
                                               
                                               
                                               

 

Sales(revenue accounts start with "4")     Account  410
 
Date
 
Item
Post
Ref.
 
Debit
 
Credit
Balance
Debit                      Credit
2008
May
1 Balance                                 7 2 0 0 --
                                               
                                               


Purchases(Purchases accounts start with "5")     Account  510
 
Date
 
Item
Post
Ref.
 
Debit
 
Credit
Balance
Debit                      Credit
2008
May
1 Balance                       5 7 0 0

--

         
                                               
                                               

 

 
Advertising Expense(Expense accounts start with "6")     Account  610
 
Date
 
Item
Post
Ref.
 
Debit
 
Credit
Balance
Debit                      Credit
2008
May
1 Balance                       1 2 0 0

--

         
  5   G1   2 3 0 --           1 4 3 0

--

         
                                               

 
Rent Expense    Account  620
 
Date
 
Item
Post
Ref.
 
Debit
 
Credit
Balance
Debit                      Credit
2008
May
1 Balance                       1 3 0 0 --          
                                               
                                               

 
Miscellaneous Expense    Account  630
 
Date
 
Item
Post
Ref.
 
Debit
 
Credit
Balance
Debit                      Credit
2008
May
1 Balance                         3 1 0

--