This chart of accounts should help you identify

the appropriate accounts to record to as you are

analyzing and journaling transactions for this
workbook. There is nothing to complete on this
page; this is simply a resource for you.

Asset Accounts Liability Accounts

Acct #
Cash 101 Notes Payable
Accounts Receivable 102 Accounts Payable
Prepaid Rent 103 Wages Payable
Office Furniture 104
Office Supplies 105
Accumulated Depreciation (contra asset) 106
 Equity Accounts
Acct # Acct #
201 Owner's Capital 301
202 Owner Draws 302
203

Revenue Accounts
Acct #
Service Revenue 401

Expense Accounts
Acct #
Rent expense 501
Business License Expense 502
Insurance Expense 503
Repairs and Maintenance 504
Advertising Expense 506
Wages Expense 507
Utilities Expense 508
Depreciation Expense 509
 A Company
General Journal Entries

Date Accounts Debit Credit

1-Mar Cash 125,000.00
Notes Payable 125,000.00

1-Mar Business License Expense 250.00

Cash 250.00

2-Mar Rent Expense 950.00

Prepaid Rent 950.00
Cash 1,900.00

5-Mar Office Furniture 2,750.00

Cash 15,000.00
Owner's Capital 17,750.00

6-Mar Cash 650.00

Service Revenue 650.00

8-Mar Advertising Expense 500.00

Accounts Payable 500.00

10-Mar Accounts Receivable 1,725.00

Service Revenue 1,725.00

15-Mar Insurance Expense 750.00

Cash 750.00

20-Mar Utilities Expense 135.00

Accounts Payable 135.00

20-Mar Repairs and Maintenance Expense 95.00

Cash 95.00

22-Mar Owner Draws 500.00

Cash 500.00

25-Mar Office Supplies 215.00

Cash 215.00
25-Mar Cash 350.00
Service Revenue 350.00

30-Mar Accounts Payable 500.00

Cash 500.00

30-Mar Cash 1,725.00

Accounts Receivable 1,725.00

31-Mar Wages Expense 275.00

Wages Payable 275.00
Due to be paid on 4/5
Accounts Receivable 3,500.00
Services Revenue 3,500.00

Accumulated Depreciation 45.83

Office Furniture 45.83

Total 155,865.83 155,865.83

Journal Entry Tips
The debited account is recorded first, credited account recorded second.
Debits and credits must always equal!
There can be compound entries in which two accounts receive a debt to an equivalent credited amount to one
Be sure to use your chart of accounts (the first page of this workbook).
Each account you will record to is already listed and organized by classification of the account.
If Red, this means your debits and credits do not equal. Be sure to review for errors.
uivalent credited amount to one account.

of the account.
 Assets Liabilities

Cash Notes Payable

1-Mar $ 125,000.00 $ 250.00 1-Mar $ 125,000.00 1-Mar
5-Mar $ 15,000.00 $ 1,900.00 2-Mar
6-Mar $ 650.00 $ 750.00 15-Mar
25-Mar $ 350.00 $ 95.00 20-Mar
30-Mar $ 1,725.00 $ 500.00 22-Mar
$ 215.00 25-Mar
$ 500.00 30-Mar
$ 142,725.00 $ 4,210.00 $ - $ 125,000.00
$ 138,515.00 $ 125,000.00

Accounts Rec. Accounts Payable

10-Mar $ 1,725.00 $ 1,725.00 30-Mar 30-Mar $ 500.00 $ 500.00 8-Mar
31-Mar $ 3,500.00 $ 135.00 20-Mar

$ 5,225.00 $ 1,725.00 $ 500.00 $ 635.00

$ 3,500.00 $ 135.00

Prepaid Rent Wages Payable

2-Mar $ 950.00 $ 275.00 31-Mar

$ 950.00 $ - $ - $ 275.00
$ 950.00 $ 275.00

Office Furniture
5-Mar $ 2,750.00

$ 2,750.00 $ -
$ 2,750.00
 Office Supplies
25-Mar $ 215.00

$ 215.00 $ -
$ 215.00

Accumulated Depreciation
31-Mar $ (45.83)

$ (45.83) $ -
$ (45.83)
 Equity Revenue

Owner's Capital Service Revenue

$ 17,750.00 5-Mar $ 650.00 6-Mar
$ 1,725.00 10-Mar
$ 350.00 25-Mar
$ 3,500.00 31-Mar

$ - $ 17,750.00 $ - $ 6,225.00
$ 17,750.00 $ 6,225.00

Owner Draws
22-Mar $ 500.00

$ 500.00 $ -
$ 500.00

Posting to the ledger/t accounts

Don't overthink it!
You are just posting each debit and credit from the journal entries to the account you identified in the entry.
These accounts are set to calculate your balances for you.
Please be careful not to delete the running totals as those will calculate the ending balance.
The ending balance will transfer to the Trial Balance sheet.
If you have posted all entries and your trial balance is not in balance (total debits = total credits),
this means that there is an error.
 Expenses

Rent Expense
2-Mar $ 950.00

$ 950.00 $ -
$ 950.00

Business License Expense

1-Mar $ 250.00

$ 250.00 $ -
$ 250.00

Insurance Expense
15-Mar $ 750.00

tified in the entry.

$ 750.00 $ -
$ 750.00

Repairs & Maint.

20-Mar $ 95.00

$ 95.00 $ -
$ 95.00
 Advertising Expense
8-Mar $ 500.00

$ 500.00 $ -
$ 500.00

Wages Expense
31-Mar $ 275.00

$ 275.00 $ -
$ 275.00

Utilities Expense
20-Mar $ 135.00

$ 135.00 $ -
$ 135.00

Depreciation Expense
31-Mar $ 45.83

$ 45.83 $ -
$ 45.83
 Trial Balance
As of 03/31/20XX

Unadjusted trial balance

Account Debit Credit

Cash 138,515.00
Accounts Receivable 3,500.00
Prepaid Rent 950.00
Office Furniture 2,750.00
Office Supplies 215.00
Accumulated Depreciation (45.83)
Notes Payable 125,000.00
Accounts Payable 135.00
Wages Payable 275.00
Owner's Capital 17,750.00
Owner Draws 500.00
Service Revenue 6,225.00
Rent Expense 950.00
Business License Expense 250.00
Depreciation Expense 45.83
Insurance Expense 750.00
Repairs and Maintenance Expense 95.00
Advertising Expense 500.00
Wages Expense 275.00
Utilities Expense 135.00
Total: 149,385.00 149,385.00

Debits should equal credits

`
Trial Balance
Balances from the t accounts will autofill your trial balance.
If total debits do not equal total credits in the trial balance, you know you have an error.
These are the balances that will be used to prepare the financial statements.
Be sure to implement feedback provided by your instructor for this Milestone One submission!
 A Company
Income Statement
For Month ending 3/31/20XX

Revenues
Service Revenue $ 6,225.00

Total Revenues $ 6,225.00

Operating Expenses:
Rent exp $ 950.00
Business License Exp $ 250.00
Depreciation exp $ 45.83
Insurance Exp $ 750.00
Repairs and Maint Exp. $ 95.00
Advertising exp. $ 500.00
Wage Exp. $ 275.00
Utilities Exp. $ 135.00

Total Operating Expenses: 3,000.83

Net Income 3,224.17

 Company Name
Statement of Owner's Equity
Period Ending 03/31/20XX
Beginning Capital on 3/01/20XX $ 125,000.00
Increases to capital
Net income/loss: $ 3,224.17
Owner Contributions $ 17,750.00
Subtotal: $ 20,974.17

Decreases to capital

Owner Draws $ 500.00

Ending Equity as of 03/31/20XX $ 20,474.17

 A Company
Balance Sheet
As of March 31, 20XX

Assets
Current Assets:
cash 138,515.00
rent (prepaid) 950.00
office supplies 215.00

Total Current Assets 139,680.00

Non-Current Assets:
office furniture 2,704.17
accounts receivable 3,500.00
Total Non Current/Fixed Assets 6,204.17

Total Assets: 145,884.17

Liabilities and Owners' Equity
Current Liabilities:
accounts payable 135.00
wages payable 275.00
Total Current Liabilities 410.00
Long Term Liabilities:

Total Long Term Liabilities: 125,000.00

Total Liabilities: 125,410.00

Owner's Equity
Owner's Equity 20,474.17

Total Equity 20,474.17

Total Liabilities & Equity 145,884.17 <== Total Assets on the left should equal Liabilities + Owner's
ould equal Liabilities + Owner's Equity on the right.
 A Company
Closing Entries
Month ending 03/31/20XX

Date Accounts Debit Credit

31-Mar service revenue 6,225.00

Close revenues

31-Mar business license expense 250.00

rent expense 950.00
advertising expense 500.00
insurance expense 750.00
utilities expense 135.00
repairs and maint. Expense 95.00
wages expense 275.00
depreciation expense 45.83

Close Expenses

31-Mar net income 3,224.17

Close Income Summary

31-Mar

Close Owner Draws

6,225.00 6,225.00