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Assignment Qs 1 - Journalization and Posting

The document describes transactions from three different companies - Alma's Payroll Services, Joan Robinson's law office, and M. Alberti and Co. law firm. For each company, it lists cash receipts, cash payments, purchases, expenses, investments and withdrawals for the months of May 2017, July 2017, and March respectively. The task is to record journal entries for each set of transactions and post them to the general ledger.

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Shehzad Qureshi
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520 views2 pages

Assignment Qs 1 - Journalization and Posting

The document describes transactions from three different companies - Alma's Payroll Services, Joan Robinson's law office, and M. Alberti and Co. law firm. For each company, it lists cash receipts, cash payments, purchases, expenses, investments and withdrawals for the months of May 2017, July 2017, and March respectively. The task is to record journal entries for each set of transactions and post them to the general ledger.

Uploaded by

Shehzad Qureshi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Question 1

Alma’s Payroll Services Company entered into the following transactions during May 2017.

1. Purchased computers for $15,000 from Bytes of Data on account.

2. Paid $3,000 cash for May rent on storage space.

3. Received $12,000 cash from customers for contracts billed in April.

4. Performed payroll services for Magic Construction Company for $2,500 cash.

5. Paid Northern Ohio Power Co. $7,000 cash for energy usage in May.

6. Alma invested an additional $25,000 in the business.

7. Paid Bytes of Data for the computers purchased in (1) above.

8. Incurred advertising expense for May of $900 on account.

Prepare journal entries in the General Journal and post the entries to the General Ledger.

Question 2

Joan Robinson opens her own law office on July 1, 2017. During the first month of operations, the
following transactions occurred.

1. Joan invested $11,000 in cash in the law practice.

2. Paid $800 for July rent on office space.

3. Purchased equipment on account $3,000.

4. Performed legal services to clients for cash $1,500.

5. Borrowed $700 cash from a bank.

6. Performed legal services for client on account $2,000.

7. Paid monthly expenses: salaries and wages $500, utilities $300, and advertising $100.

8. Joan withdrew $1,000 cash for personal use.

Prepare journal entries in the General Journal and post the entries to the General Ledger.
Question 3

Transactions made by M. Alberti and Co., a law firm, for the month of March are shown below.

1. The company performed $20,000 of services for customers, on credit.

2. The company received $20,000 in cash from customers who had been billed for services (in
transaction 1).

3. The company received a bill for $2,300 of advertising but will not pay it until a later date.

4. M. Alberti withdrew $3,600 cash from the business for personal use.

Prepare journal entries in the General Journal and post the entries to the General Ledger.

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