ACCY111

– Week 6 Solutions

Chapter 3: Recording transactions

Problems

Problem 3.16

Journal entries, posting to ledger, and trial balance

Non-GST version

(a)

General Journal

July 2 Cash at Bank 100 120 000

Nicole Andreou, Capital 300 120 000
Cash invested by owner.

2 Rent Expense 500 1 800

Cash at Bank 100 1 800
Rent paid.

3 Equipment 103 70 000

Cash at Bank 100 32 000
Loan Payable 200 38 000
Equipment purchased for cash and
loan payable.

4 Supplies 102 8 400

Cash at Bank 100 8 400
Supplies purchased.

6 Advertising Expense 501 890

Cash at Bank 100 890
Cash paid for advertising.

16 Cash at Bank 100 3 250

Accounts Receivable 101 620
Revenue 400 3 870
Revenue for first half of month

20 Insurance Expense 502 480

Cash at Bank 100 480
Cash paid for insurance

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ACCY111 – Week 6 Solutions

23 Cash at Bank 100 140

Accounts Receivable 101 140
Receipt of payment from customers

28 Nicole Andreou, Drawings 301 560
Cash at Bank 100 560
Drawings by owner

31 Cash at Bank 100 3 680

Accounts Receivable 101 580
Revenue 400 4 260
Revenue for second part of month

31 Telephone Expense 503 330

Cash at Bank 100 330
Telephone expenses paid

b)

ACCOUNT: Cash at Bank Account No. 100

Date Explanation Post Debit Credit Balance
Ref
2018
2 7 Nicole Andreou, Capital 120 000 120 000
2 7 Rent Expense 1 800 118 200
3 7 Equipment 32 000 86 200
4 7 Supplies 8 400 77 800
6 7 Advertising Expense 890 76 910
16 7 Revenue 3 250 80 160
20 7 Insurance Expense 480 79 680
23 7 Accounts Receivable 140 79 820
28 7 Nicole Andreou, Drawings 560 79 260
31 7 Revenue 3 680 82 940
31 7 Telephone Expense 330 82 610

ACCOUNT: Accounts Receivable Account No. 101

Date Explanation Post Debit Credit Balance
Ref
2018
16 7 Revenue 620 620

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ACCY111 – Week 6 Solutions

23 7 Cash at Bank 140 480

31 7 Revenue 580 1 060

ACCOUNT: Supplies Account No. 102

Date Explanation Post Debit Credit Balance
Ref
2018
4 7 Cash at Bank 8 400 8 400

ACCOUNT: Equipment Account No. 103

Date Explanation Post Debit Credit Balance
Ref
2018
3 7 Cash and Loan Payable 70 000 70 000

ACCOUNT: Loan Payable Account No. 200

Date Explanation Post Debit Credit Balance
Ref
2018
3 7 Equipment 38 000 38 000

ACCOUNT: Nicole Andreou, Capital Account No. 300

Date Explanation Post Debit Credit Balance
Ref
2018
2 7 Cash at Bank 120 000 120 000

ACCOUNT: Nicole Andreou, Drawings Account No. 301

Date Explanation Post Debit Credit Balance
Ref
2018
28 7 Cash at Bank 560 560

ACCOUNT: Revenue Account No. 400

Date Explanation Post Debit Credit Balance
Ref
2018
16 7 Cash and Accounts 3 870 3 870
Receivable
31 7 Cash and Accounts 4 260 8 130
Receivable

ACCOUNT: Rent Expense Account No. 500

Date Explanation Post Debit Credit Balance

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ACCY111 – Week 6 Solutions

Ref
2018
2 7 Cash at Bank 1 800 1 800

ACCOUNT: Advertising Expense Account No. 501

Date Explanation Post Debit Credit Balance
Ref
2018
6 7 Cash at Bank 890 890

ACCOUNT: Insurance Expense Account No. 502

Date Explanation Post Debit Credit Balance
Ref
2018
20 7 Cash at Bank 480 480

ACCOUNT: Telephone Expense Account No. 503
Date Explanation Post Debit Credit Balance
Ref
2018
31 7 Cash at Bank 330 330

(c)

NICOLE ANDREOU BEAUTY SALON

Trial Balance
as at 31 July 2018
Account Account Debit Credit
No.
Cash at Bank 100 $82 610
Accounts Receivable 101 1 060
Supplies 102 8 400
Equipment 103 70 000
Loan Payable 200 $38 000
Nicole Andreou, Capital 300 120 000
Nicole Andreou, Drawings 301 560
Revenue 400 8 130
Rent Expense 500 1 800
Advertising Expense 501 890
Insurance Expense 502 480
Telephone Expense 503 330
$166 130 $166 130

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ACCY111 – Week 6 Solutions

Problem 3.19

Journal entries, entering beginning account balances, posting to T accounts, and trial
balance

Non-GST version

Required
(a) Prepare journal entries to record each transaction.
(b) i. Open T accounts for the accounts shown in the trial balance.
ii. Enter the 31 May balance in each account.
iii. Post the journal entries to the T accounts.
(c) Prepare a trial balance as at 30 June 2020.
(LO3, LO4 and LO5)
(a)
General Journal
(GST ignored)
June 1 Supplies 5 800
Accounts Payable 5 800
Purchase of supplies on credit.

3 Cash at Bank 24 400

Accounts Receivable 24 400
Cash received from patients.

6 Electricity Account Payable 9 500

Cash at Bank 9 500
Payment of electricity account.

10 Unearned Revenue 2 000

Services Revenue 2 000
Revenue previously received.

14 Cash at Bank 178 600

Accounts Receivable 13 650
Services Revenue 192 250
Revenue received and receivable.

14 Salary Expense 65 880

Cash at Bank 65 880
Salaries paid.

20 Furniture and Equipment 15 400

Cash at Bank 15 400
Furniture purchased for cash.

23 A. Wait, Drawings 60 000

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ACCY111 – Week 6 Solutions

Cash at Bank 60 000

Drawings by owner.

24 Accounts Payable 7 000

Cash at Bank 7 000
Payment to creditors.

26 Prepaid Insurance 24 000

Cash at Bank 24 000
Purchase of insurance policy.

27 Cash at Bank 12 000
Accounts Receivable 12 000
Payment received from debtors.

29 Cash at Bank 124 600

Accounts Receivable 25 000
Services Revenue 149 600
Revenue received and on account.

30 Rent Expense 24 000

Cash at Bank 24 000
Payment of rent.

(b)

Cash at Bank
31/5 Balance b/d 105 000 6/6 Electricity Account 9 500
Payable
3/6 Accounts 24 400 14/6 Salary Expense 65 880
Receivable
14/6 Services Revenue 178 600 20/6 Furniture & Equipment 15 400
27/6 Accounts 12 000 23/6 A. Wait, Drawings 60 000
Receivable
29/6 Services Revenue 124 600 24/6 Accounts Payable 7 000
26/6 Prepaid Insurance 24 000
30/6 Rent Expense 24 000
30/6 Balance c/d 238 820
$444 600 $444 600
30/6 Balance b/d 238 820

Accounts Receivable

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ACCY111 – Week 6 Solutions

31/5 Balance b/d $48 000 3/6 Cash at Bank 24 400

14/6 Services Revenue 13 650 27/6 Cash at Bank 12 000
29/6 Services Revenue 25 000 30/6 Balance c/d 50 250
$86 650 $86 650
30/6 Balance b/d 50 250

Supplies
31/5 Balance b/d 12 300
1/6 Accounts Payable 5 800 Balance c/d 18 100
18 100 18 100
30/6 Balance b/d 18 100

Prepaid Insurance
31/5 Balance b/d $8 200
26/6 Cash at Bank 24 000 30/6 Balance c/d 32 200
32 200 32 200
30/6 Balance b/d 32 200

Furniture and Equipment
31/5 Balance b/d $260 600
20/6 Cash at Bank 15 400 30/6 Balance c/d 276 000
276 000 276 000
30/6 Balance b/d 276 000

Accounts Payable
31/5 Balance b/d 9 700
24/6 Cash at Bank 7 000 1/6 Supplies 5 800
30/6 Balance c/d 8 500
15 500 15 500
30/6 Balance b/d 8 500

Electricity Account Payable

6/6 Cash at Bank 9 500 31/5 Balance b/d 9 500

Unearned Revenue
10/6 Services Revenue 2 000 31/5 Balance b/d 2 900
30/6 Balance c/d 900

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ACCY111 – Week 6 Solutions

2 900 2 900
30/6 Balance b/d 900

A. Wait, Capital
31/5 Balance b/d 314 960

A. Wait, Drawings
31/5 Balance b/d 161 200
23/6 Cash at Bank 60 000 30/6 Balance c/d 221 200
221 200 221 200
30/6 Balance b/d 221 200

Services Revenue
31/5 Balance b/d 462 000
10/6 Unearned Revenue 2 000
14/6 Cash at Bank/AR 192 250
30/6 Balance c/d 805 850 29/6 Cash at Bank/AR 149 600
805 850 805 850
30/6 Balance b/d 805 850

Salary Expense
31/5 Balance b/d 170 300
14/6 Cash at Bank 65 880 30/6 Balance c/d 236 180
236 180 236 180
30/6 Balance b/d 236 180

Electricity Expense
31/5 Balance b/d 9 460

Rent Expense
31/5 Balance b/d 24 000
30/6 Cash at Bank 24 000 30/6 Balance c/d 48 000
48 000 48 000
30/6 Balance b/d 48 000

(c)

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ACCY111 – Week 6 Solutions

AMY WAIT, PHYSIOTHERAPIST

Trial Balance
as at 30 June 2020
Debit Credit
Cash at Bank $238 820
Accounts Receivable 50 250
Supplies 18 100
Prepaid Insurance 32 200
Furniture and Equipment 276 000
Accounts Payable $8 500
Unearned Revenue 900
A. Wait, Capital 314 960
A. Wait, Drawings 221 200
Services Revenue 805 850
Salary Expense 236 180
Electricity Expense 9 460
Rent Expense 48 000
$1 130 210 $1 130 210