Ex.16 On 1 July 2018 Nicole Andreou opened a beauty parlour.

The following
transactions occurred during the first month of operations (ignore GST).

July 2 Andreou invested $120 000 in the business by depositing cash into a business
cheque account with the Eastpac Bank.
2 Paid $1800 for the first month’s rent.
3 Purchased equipment by an online bank transfer for $32 000 and signed a
commercial loan agreement for $38 000.
4 Purchased supplies for $8400.
6 Paid advertising expense of $890.
16 Recorded beauty services revenue for the first half of the month of $3250 in cash
and $620 on credit.
20 Paid insurance expense for July of $480 using an online bank transfer.
23 Received a $140 payment from customers who paid on credit in the first half of
the month.
28 Andreou withdrew $560 cash for personal living expenses.
31 Recorded revenue for the second half of the month of $3680 in cash and $580 on
credit.
31 Paid telephone account of $330 by electronic transfer
General Journal

Date Particulars Post Debit Credit

ref
July 2 Cash at bank 100 120000
Andreou, Owner Capital 300 120000
(Cash deposited by owner into business
bank account)

2 Prepaid rental expense 500 1800

Cash at bank 1800
(Payment of rent in the 1st month)
3 Equipment 103 70000
Loan payable 200 38000
Cash at bank 100 32000
(Payment of equipment)
4 Supplies 102 8400
Cash at bank 100 8400
(Payment of Supplies)
6 Advertising expense 501 890
Cash at bank 100 890
16 Cash at bank 100 3250
Accounts Receivable 101 620
Services revenue 400 3870
(Beauty service revenue for the 1st half of
 month)
20 (Prepaid)X insurance expense 520 480
Cash at bank 100 480
(Purchase of insurance for July)
23 Accounts Receivable Cash 101 140
Revenue A/R 400 140
(Receipt by customers on credit)
28 Andreou, Drawings 301 560
Cash at bank 100 560
(Andreou withdrew 560$ for personal use)
31 Cash at bank 100 3680
Accounts receivable 101 580
Revenue 4260
(Revenue for the past half of month)
31 Telephone expense 503 330
Cash at bank 330
(Telephone expense paid)

ACCOUNT Cash at bank Account

No.100

Date Explanation Debit Credit Balance

2018 Andreou, Owner Capital 120 000 120 000
July 2
2 Prepaid Rent 1 800 118 200
3 Office Equipment 32 000 86 200
4 Supplies 8 400 77 800
6 Ads expense 890 76 910
16 Services Revenue 3250 80 160
20 Prepaid Insurance Expense 480 79 680
23 A/R 140 79820
28 Andreou, Drawings 560 79 120
31 Services Revenue 3680 82 800
31 Telephone Expense 330 82 470

ACCOUNT Accounts Receivable Account No.101

Date Explanation Debit Credit Balance

2018 Services Revenue 620 620
July 16
23 Sevices Revenue 140 140 760 480
31 Services Revenue 580 1340
1060

ACCOUNT Prepaid insurance Account No.520

Date Explanation Debit Credit Balance
July 20 Cash at bank 480 480

ACCOUNT Prepaid rental expense Account No.500

Date Explanation Debit Credit Balance

July 2 Cash at bank 1800 1800

ACCOUNT Equipment Account No.103

Date Explanation Debit Credit Balance

July 3 Cash at bank/ 70000 70000
Loan Payable

ACCOUNT Supplies Account No.102

Date Explanation Debit Credit Balance

July 4 Cash at bank 8400 8400

ACCOUNT Ads expense Account No.501

Date Explanation Debit Credit Balance

July 6 Cash at bank 890 890

ACCOUNT Services Revenue Account No.400

Date Explanation Debit Credit Balance

July 16 Cash at bank 3250 3250
16 Accounts Receivable 620 3870
23 Accounts Receivable 140 4010
31 Cash at bank 3680 7690
31 Accounts Receivable 580 8270

ACCOUNT Andreou,Capital Account No.300

Date Explanation Debit Credit Balance

July 2 Cash at bank 120000 120000
ACCOUNT Drawings Account No.301

Date Explanation Debit Credit Balance

July 28 Cash at bank 560 560

ACCOUNT Telephone expense Account No.503

Date Explanation Debit Credit Balance

July 31 Cash at bank 330 330
ACCOUNT Loan payabe Account No.200

Date Explanation Debit Credit Balance

July 3 Office equipment 38000 38000

Trial Balance
As at 31 July 2018

Account Account Debit Credit

No.
Cash at bank 100 82470
Accounts Receivable 101 1340
Prepaid Insurance 520 480
Prepaid rental expense 500 1800
Equipment 103 70000
Supplies 102 8400
Ads Expense 501 890
Services Revenue 400 8270
Andreou, Capital 300 120000
Drawings 301 560
Telephone Expense 503 330
Loan payable 38000
166270 166270

Ex 3.19

June 1 Purchased supplies on credit for $5800.

3 Received $24 400 from patients as payment on account.
6 Paid the electricity expense of $9500, previously recorded.
1 Performed services for $2000 that was recorded previously as
 0 unearned revenue. Recorded revenue of $178 600 in cash and $13
1 650 on credit.
4 Paid salaries of $65 880.
Purchased furniture for $15 400, paid by electronic transfer.
2 Withdrew $60 000 from the business for personal use.
0 Paid creditors $7000.
2 Purchased insurance policy for $24 000 to cover business assets.
3 Received $12 000 from patients as payment on account.
2 Recorded revenue of $124 600 in cash and $25 000 on credit.
4 Paıd rent of $24 000
2
6
2
7
2
9
3
0

Date Particulars Debit Credit

June 1 Supplies 5800
Accounts Payable 5800
(Purchase of supplies on credit)
3 Accounts Receivable 24400
Revenue 24400
(Payments from patients on account)
6 Electricity expense 9500
Cash at bank 9500
(Elec expense previously recorded)
10 Cash at bank 2000
Unearned income 2000
(Cash received for services recorded previously)
14 Cash at bank 178600
Accounts receivable 13650
Revenue 192250
(Fees for services revenue)
14 Salaries Expense 65880
 Cash at bank 65880
(Salaries paid to employees)
20 Furniture 15400
Accounts Payable 15400
(Furniture purchased by electronic transfer)
23 Drawings 60000
Cash at bank 60000
(Drawings of cash by owner)
24 Accounts Payable 7000
Cash at bank 7000
(Payment to creditors)
26 Prepaid Insurance 24000
Cash at bank 24000
(Payment of prepaid insurance policy)
27 Accounts Receivable 12000
Revenue 12000
29 Cash at bank 124600
Accounts Receivable 25000
Revenue 149600
30 Rental expense 24000
Cash at bank 24000
(Payment of rent)

Cash at bank

Cash at bank
31/5 Cash at bank 105000 6/6 Elec expense 9500
14/6 Services revenue 178600 14/6 Salaries expense 65880
10/6 Unearned income 2000 23/6 Drawings 60000
29/6 Revenue 124600 24/6 Accounts Payable 7000
26/6 Prepaid Insurance 24000
30/6 Rental expense 24000
Balance debit 410200 Balance credit 190380
Balance 219820

Accounts Receivable
31/5 Accounts Receivable 48000 3/6 Revenue 24400
14/6 Revenue 13650
27/6 Revenue 12000
29/6 Revenue 25000
Balance debit 98650 Balance credit 24400
Balance 74250
Accounts Payable
1/6 Supplies 5800
20/6 Furniture 15400