NetSolutions

Transactions of November 2005:

Nov 1 Chris Clark deposits $25,000 in a bank account

in the name of NetSolutions.

Nov 5 NetSolutions exchanged $20,000 for land.

Nov 10 During the month, NetSolutions purchased

supplies for $1,350 and agreed to pay the
supplier in the near future (on account).

Nov 18 NetSolutions provided services to customers,

earning fees of $7,500 and received the amount
in cash.

Nov 30 NetSolutions paid the following expenses:

wages, $2,125; rent, $800; utilities, $450; and
miscellaneous, $275.

Nov 30 NetSolutions paid $950 to creditors during the

month.

Nov 30 At the end of the month, the cost of supplies on

hand is $550, so $800 of supplies were used.

Nov 30 At the end of the month, Chris withdrew $2,000

in cash from the business for personal use.

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NetSolutions
Transactions of December 2005:

Dec. 1 NetSolutions paid a premium of $2,400 for a

comprehensive insurance policy covering two
years.

Dec. 1 NetSolutions paid rent for December, $800.

Dec. 1 NetSolutions receives $360 for three month’s

rent beginning December 1.

Dec. 4 NetSolutions purchased office equipment on

account from Executive Supply Co. for $1,800.

Dec. 6 NetSolutions paid $180 for a newspaper

advertisement.

Dec. 11 NetSolutions paid creditors $400.

Dec. 13 NetSolutions paid a receptionist and part-time

assistant $950 for two weeks’ wages.

Dec. 16 NetSolutions received $3,100 from fees earned

for the first half of December.

Dec. 16 Fees earned on account totaled $1,750 for the

first half of December.

Dec. 20 NetSolutions paid $900 to Executive Supply Co.

on the $1,800 debt owed from the December 4
transaction.

Dec. 21 NetSolutions received $650 from customers in

payment of their accounts.

Dec. 23 NetSolutions paid $1,450 for supplies.

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Dec. 27 NetSolutions paid the receptionist and part-time
assistant $1,200 for two weeks’ wages.

Dec. 31 NetSolutions paid its $310 telephone bill for the

month.

Dec. 31 NetSolutions paid its $225 electricity bill for the

month.

Dec. 31 NetSolutions received $2,870 from fees earned

for the second half of December.

Dec. 31 NetSolutions earned $1,120 on account for the

second half of December.

Dec. 31 Chris Clark withdrew $2,000 for personal use.

Accounts should be prepared:

11 Cash
12 Accounts Receivable
13 Supplies
14 Prepaid Insurance
15 Land
16 Office Equipment
21 Accounts Payable
22 Unearned Rent
31 Chris Clark, Capital
32 Chris Clark, Withdrawal
41 Fees Earned
51 Wages Expense
52 Rent Expense
53 Utilities Expense
54 Supplies Expense
55 Miscellaneous Expense

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 GENERAL JOURNAL
NetSolutions

Date Description Ref. Debit

Nov, 2005 1 Cash 11 25.000

Chris Clark, Capital 31
5 Land 15 20.000
Cash 11
10 Supplies 1.350
Accounts Payable
18 Cash 7.500
Fees Earned
30 Wages Expense 2.125
Rent Expense 800
Utilities Expense 450
Miscellaneous Expense 275
Cash
30 Accounts Payable 950
Cash
30 Supplies Expense 800
Supplies
30 Chris Clark, Withdrawal 2.000
Cash

Dec, 2008 1 Prepaid Insurance 2.400

Cash
1 Rent Expense 800
Cash
1 Cash 360
Unearned Rent
4 Office Equipment 1.800
Accounts Payable
6 Miscellaneous Expense 180
Cash
11 Accounts Payable 400
Cash
13 Wages Expense 950
Cash
16 Cash 3.100
Fees Earned
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16 Accounts Receivable 1.750
Fees Earned
20 Accounts Payable 900
Cash
21 Cash 650
Accounts Receivable
23 Supplies 1.450
Cash
27 Wages Expense 1.200
Cash
31 Utilities Expense 310
Cash
31 Utilities Expense 225
Cash
31 Cash 2.870
Fees Earned
31 Accounts Receivable 1.120
Fees Earned
31 Chris Clark, Withdrawal 2.000
Cash

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 (in US$)
Page 01

Credit

25.000

20.000

1.350

7.500

3.650

950

800

2.000

2.400

800

360

1.800

180

400

950

3.100
3
1.750

900

650

1.450

1.200

310

225

2.870

1.120

2.000

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ACCOUNT: Cash ACCOUNT NO. 11
Balance
Date Description Ref. Debit Credit
Debit

ACCOUNT: Accounts Receivable ACCOUNT NO. 12

Balance
Date Description Ref. Debit Credit
Debit

ACCOUNT: Supplies ACCOUNT NO. 13

Balance
Date Description Ref. Debit Credit
Debit

ACCOUNT: Prepaid Insurance ACCOUNT NO. 14

Balance
Date Description Ref. Debit Credit
Debit

ACCOUNT: Land ACCOUNT NO. 15

Balance
Date Description Ref. Debit Credit
Debit

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ACCOUNT: Office Equipment ACCOUNT NO. 16
Balance
Date Description Ref. Debit Credit
Debit

ACCOUNT: Accounts Payable ACCOUNT NO. 21

Balance
Date Description Ref. Debit Credit
Debit

ACCOUNT: Unearned Rent ACCOUNT NO. 22

Balance
Date Description Ref. Debit Credit
Debit

ACCOUNT: Chris Clark, Capital ACCOUNT NO. 31

Balance
Date Description Ref. Debit Credit
Debit

ACCOUNT: Chris Clark, Withdrawal ACCOUNT NO. 32

Balance
Date Description Ref. Debit Credit
Debit

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ACCOUNT: Fees Earned ACCOUNT NO. 41
Balance
Date Description Ref. Debit Credit
Debit

ACCOUNT: Wages Expense ACCOUNT NO. 51

Balance
Date Description Ref. Debit Credit
Debit

ACCOUNT: Rent Expense ACCOUNT NO. 52

Balance
Date Description Ref. Debit Credit
Debit

ACCOUNT: Utilities Expense ACCOUNT NO. 53

Balance
Date Description Ref. Debit Credit
Debit

ACCOUNT: Supplies Expense ACCOUNT NO. 54

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 Balance
Date Description Ref. Debit Credit
Debit

ACCOUNT: Miscellaneous Expense ACCOUNT NO. 55

Balance
Date Description Ref. Debit Credit
Debit

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 NetSolutions
TRIAL BALANCE
Per Dec 31, 2005

Description Debit

11 Cash 2.065
12 Accounts Receivable 2.220
13 Supplies 2.000
14 Prepaid Insurance 2.400
15 Land 20.000
16 Office Equipment 1.800
21 Accounts Payable
22 Unearned Rent
31 Chris Clark, Capital
32 Chris Clark, Withdrawal 4.000
41 Fees Earned
51 Wages Expense 4.275
52 Rent Expense 1.600
53 Utilities Exxpense 985
54 Supplies Expense 800
55 Miscellaneous Expense 455

TOTAL 42.600

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 (in US$)

Credit

900
360
25.000

16.340

42.600