SERIES A PROBLEMS T ACCOUNTS AND TRIAL BALANCE Wilhelm Kohl

SERIES A PROBLEMS T ACCOUNTS AND TRIAL BALANCE Wilhelm Kohl started a business in May Kohl has decided to use the following accounts for recording transactions: SHOW ME HOW Cash bal. after (pl: $21,805 (Dr.) 20- called Kohl\'s Home Repair Kohl hired a part-time college student as an assistant. Trial bal. total debits: $44,900 P 3-13A (LO2/4/5) Assets Owner\'s Equity Wilhelm Kohl, Capital Wilhelm Kohl, Drawing CLGL Cash Accounts Receivable Office Supplies Revenue Service Fees Prepaid Insurance Equipment Van SHOW ME HOW Expenses Rent Expense Wages Expense Phone Expense Liabilities Accounts Payable s and Oil Expense The following transactions occurred during May: (a) Invested cash in the business, $25,000. (b) Purchased a used van for cash, $6,000. (c) Purchased equipment on account, $4,000. (d) Received cash for services rendered, $7,500. (e) Paid cash on account owed from transaction (c), $2,300. (f) Paid rent for the month, $850. (g) Paid phone bill, $230. (h) Earned revenue on account, $4,500. (i) Purchased office supplies for cash, $160. Gi) Paid wages to an assistant, $800. k) Purchasedaone-year insurance r wo, s 1,100. (l) Received cash from services performed in transaction (h), $3,400. (m) Paid cash for gas and oil expense c van, $155. (n) Purchased additional equipment fo, 200, paying $1,500 cash and spreading the remaining payments over the a 10 months (o) Earned service fees for the renainder of the month of $3,500: $1,900 in cash and $1,600 on account. (p) Withdrew cash at the end of the month, $2,900.

Solution

Journal:

T accounts:

TB

Ref	Account	Debit	Credit
a	Cash	25,000
	Wilhelm kohl, capital		25,000
b	Van	6,000
	Cash		6,000
c	Equipment	4,000
	Accounts payable		4,000
d	Cash	7,500
	Service fees		7,500
e	Accounts payable	2,300
	Cash		2,300
f	Rent expense	850
	Cash		850
g	Phone expense	230
	Cash		230
h	Accounts receivable	4,500
	Cash		4,500
i	Office supplies	160
	Cash		160
j	Wages expense	800
	Cash		800
k	Prepaid insurance	1,100
	Cash		1,100
l	Cash	3,400
	Accounts receivable		3,400
m	Gas and oil expense	155
	Cash		155
n	Equipment	34,200
	Cash		34,200
o-1	Cash	1,900
	Service fees		1,900
o-2	Accounts receivable	1,600
	Cash		1,600
p	Wilhelm kohl, drawing	2,900
	Cash		2,900