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Recording Transactions in a General Journal, Page 27

Assignment iconAssignment

Complete the following asssignment and submit to the Recording Transactions in a General Journal Dropbox.

This assignment is worth 16 points.

Part 1:
Based on the information given below, complete the steps of journalizing.

Rex Consulting Services opened for business in January, 2005. The company maintains the following ledger accounts: 

1.1 Cash in Bank
1.2 Accounts receivable
1.3 Office supplies
1.4 Office equipment
2.1 Accounts payable
3.1 Capital stock
3.2 Retained earnings
4.1 Consulting revenue
5.1 Rent expenses
5.2 Utilities expenses

The company engaged in the following business activity in January:

Jan 15: Invested capital of $50,000.
Jan 17: Paid $400 office rent for the remainder of January.
Jan 20: Purchased office supplies for $200. The supplies will last for several months, and payment is not due until February 15th.
Jan 25: Purchased office equipment for $15,000 cash.
Jan 27: Performed consulting services and billed clients for $2,000. The entire amount will not be collected until February.
Jan 31: Recorded a $100 utilities expense. Payment is not due until February 20th.

Guidelines for the assignment: 

  • Analyze and identify the accounts. 
  • Classify the accounts. 
  • Apply the rules of debit and credit. 
  • Create a T account. 
  • Pass the journal entry.

Record each of the above transactions in a general journal form. 

Part 2: 

Write down all the steps required for journalizing the following business transactions: 

  • On January 5th, Mr. David took $20,000 from his personal savings and deposited it to start a business account in the name of David Transport Service. 
  • On January 6, David Transport Service issued check No. 506 for $2,000 to buy a computer system. 
  • On January 10, David Transport Service paid $100 to Blue company for telephone charges. Memorandum 5. 
  • On January 15, David Transport Service mailed check No. 507 for $500 toward the month’s rent. 
  • On January 20, David wrote check No. 508 to withdraw $500 cash for personal use.

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