The Accounting Cycle Nov 1 Luis Rulz invests 20000 to start

The Accounting Cycle: Nov. 1: Luis Rulz invests $20,000 to start his own consulting Nov. 1: Purchased a one-year fire insurance policy. $960. a computer for $10,00, paying $3 500 down w baedu in o dayn. Nov. 6: Purchased office supplies on account from Taylor Nov.9: Paid Taylor Supply $400 on account. Nov. 10: Billed Barkley Insurance for consulting services performed, $6,000. Nov. 12: Collected $1,500 from Barkley Insurance. Nov. 12: Hired secretary to be paid $600 per week. Nov. 15: Collected $1,000 from Bryant Realty for consulting services to be performed. Nov. 26: Paid the secretary two weeks\' wages, $1,200. Nov. 29: Received and paid the November utility bill, $700. Nov. 30: Received (but did not pay) the November telephone bill, $10o. Supply, $1,500 Nov. 30: Performed consulting services for Bing Enterprises, $4,800, to be collected in December. Nov. 30: Ruiz withdrew $1,400 from the business for personal living expenses.

Solution

cash a/c

to capital

( being amount invested in business)

insurance a/c

to cash

( being amount paid for insurance policy)

computer a/c

to cash

to creditors of computers

( being computer purchased for cash and balance due in 60 days )

3500

6500

office supplies a/c

to taylor

( being office supplies purchased from taylor on account)

taylor a/c

to cash

( being cash payment made to taylor)

barkley insurance a/c

to sales

being services given to barkley insurance)

cash a/c

to barkley insurance

( being amount collected from barkley insurance)

cash a/c

to bryant realty

( being advance received from bryant realty)

wages a/c

to cash

( being secretary two weeks wages paid in cash)

bill expenses a/c

to cash

being expenses made in cash

telephone expenses a/c

to telephone bill outstanding

being amount outstanding for telephone bill expenses

bing enterprises a/c

to sales

being services performed for bing enterprises

drawings a/c

to cash

being amount withdrew from the business for personal expenses

DATE	PARTICULARS	DEBIT$	CREDIT$
nov 1	cash a/c to capital ( being amount invested in business)	20000	20000
nov 1	insurance a/c to cash ( being amount paid for insurance policy)	960	960
nov 5	computer a/c to cash to creditors of computers ( being computer purchased for cash and balance due in 60 days )	10000	3500 6500
nov 6	office supplies a/c to taylor ( being office supplies purchased from taylor on account)	1500	1500
nov 9	taylor a/c to cash ( being cash payment made to taylor)	400	400
nov 10	barkley insurance a/c to sales being services given to barkley insurance)	6000	6000
nov 12	cash a/c to barkley insurance ( being amount collected from barkley insurance)	1500	1500
nov 15	cash a/c to bryant realty ( being advance received from bryant realty)	1000	1000
nov 26	wages a/c to cash ( being secretary two weeks wages paid in cash)	1200	1200
nov 29	bill expenses a/c to cash being expenses made in cash	700	700
nov 30	telephone expenses a/c to telephone bill outstanding being amount outstanding for telephone bill expenses	100	100
nov 30	bing enterprises a/c to sales being services performed for bing enterprises	4800	4800
nov 30	drawings a/c to cash being amount withdrew from the business for personal expenses	1400	1400