NAME Principles of Accounting Quiz 2 Chapter 2 10 Points Tra

NAME Principles of Accounting Quiz 2 Chapter 2 10 Points Transactions for Giles Company for the month of May are presented below. On the form provided on the following page, journalize these transactions in general journal form Identify each transaction by number. Omit explanations. A partial chart of accounts is provided Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Equipment Notes Payable Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Dividends Service Revenue Insurance Expense Advertising Expense Wages Expense Rent Expense After you have journalized the transactions, post those entries which affect cash into the T account form provided and calculate the ending balance in the cash account. 1. The Company issues stock in exchange for $100,000. 2. Purchased equipment costing $18,000 for $3,000 cash and the remainder on credit. 3. Paid $500 for current month\'s rent 4. Purchased supplies on credit for $500. 5. Paid $1200 for a one-year insurance policy. 6. Reoeived a bill for $300 for advertising for the current month. Payment will be made in two weeks. 7. Billed customer $5,000 for servioes performed on account 8. Hireda a new employee who will begin work next week at a rate of $1,250 per week. 9. Collected $1,000 from customers billed in transaction 7 10. The Company paid dividends of $800 to stockholders. 11. Received $750 in advance for services to be performed next month. 12. Made a partial payment of $100 for supplies purchased in 4.

Solution

Ending balance in cash account = $96,150.

Giles Company
General journal for the month of may
Event	Account Title	Debit	Credit
1	Cash	100000
	Common stock		100000
	(Issue of common stock for cash)
2	Equipment	18000
	Cash		3000
	Accounts Payable		15000
	(Purchase of equipment)
3	Rent Expense	500
	Cash		500
	(Cash paid for current month\'s rent)
4	Supplies	500
	Accounts Payable		500
	(Purchase of supplies on credit)
5	Prepaid Insurance	1200
	Cash		1200
	(Payment for one-year insurance)
6	Advertising Expense	300
	Accounts Payable		300
	(Advertising bill received)
7	Accounts Receivable	5000
	Service Revenue		5000
	(Billed customers for services performed)
8	No entry required
9	Cash	1000
	Accounts Receivable		1000
	(Collections made from customers on account)
10	Dividends	800
	Cash		800
	(Cash dividends paid)
11	Cash	750
	Unearned Service Revenue		750
	(Cash received for services to be performed next month)
12	Accounts Payable	100
	Cash		100
	(Cash paid to suppliers on account)