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Accounting Cycle Journal Entries Without Chart of Accounts Case III

Joyce Amador's bar and restaurant business had the following journal entries in July 2021 without a chart of accounts: 1) The owner invested in a constructed building for business use valued at $3,500,000. 2) Utilities for June 2021 were paid at $35,000 and various business purchases and payments were made throughout the month totaling over $200,000. 3) Revenue from services rendered and payments received from customers totaled over $100,000, while expenses included salaries, licenses, taxes, and loan interest payments.

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176 views1 page

Accounting Cycle Journal Entries Without Chart of Accounts Case III

Joyce Amador's bar and restaurant business had the following journal entries in July 2021 without a chart of accounts: 1) The owner invested in a constructed building for business use valued at $3,500,000. 2) Utilities for June 2021 were paid at $35,000 and various business purchases and payments were made throughout the month totaling over $200,000. 3) Revenue from services rendered and payments received from customers totaled over $100,000, while expenses included salaries, licenses, taxes, and loan interest payments.

Uploaded by

reigoraoul56
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PART 3

Accounting Cycle: Journal Entries w/o Chart of Accounts

The following transactions occurred during July 2021 for Joyce Amador in her bar and restaurant
business:

2021
July 1 The owner invested constructed building for business use, 3,500,000

2 Utilities for the month of June 2021 have been paid, 35,000

3 Bought a computer paying 20,000 cash representing 20% of the total purchase price.
50% of the total purchase price is on account and the balance is through 15% note.

4 Borrowed 100,000 cash from the bank with 2% interest per month

5 Bought kitchen supplies paying cash, 80,000

7 Bought bond papers, folders, envelope for office use paying cash, 9,000

8 Bought calculator and stapler for office use on account, 5,000

12 Returned some of the kitchen supplies bought on July 5, 20,000

15 Incurred transportation cost in order to bring the computer bought in July 3 in the
business premises paying cash, 2,500

16 Rendered services to clients paying cash, 80,000. The amount represents a 10% of total
services rendered to clients.

20 Received 25% advance payment for services to be rendered next month. The total
contract price for the service is 300,000

21 Paid salaries of employees less 500 for vale of employees last month, 7,500

22 Billed customers for services rendered, 24,873.13

24 Advance payment for advertising expense next month, 6,000

28 Some of the folders were damaged by flood amounting to 387.22

28 Made partial payment of loan for 25,000 representing the principal and 1,800 for
interest using owner’s personal fund

30 Paid municipal licenses and taxes for the month, 976.38

30 The owner takes some kitchen supplies for personal use, 6,500.

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