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Short Answer

1. In the journal provided, prepare journal entries (in good form) for the following transactions. If no entry is required, write “no entry.” Omit explanations.

Apr. 1 Stuart Franz opened a dry cleaning service, called Same Day Cleaners, by depositing $60,000 into a business bank account.

3 Paid two years’ rent in advance, $14,400.

6 Purchased dry cleaning equipment for $40,000. Paid $8,000 in cash, the remainder to be paid in two weeks.

9 Hired a part-time worker, to be paid $300 per week, starting tomorrow.

17 Paid the worker’s weekly wage.

17 Recorded cash received for services performed during the week, $3,000.

20 Paid for the remainder of the equipment purchased on April 6.

21 Received $200 in advance of cleaning and boxing a wedding gown.

23 Performed $500 of dry cleaning services for Asa’s Tuxedo Shop. Payment will be received in three days.

24 Paid the weekly wages.

26 Received payment from Asa’s Tuxedo Shop.

30 Received a telephone bill for $100, which will be paid in two weeks.

short Answer

1. From the following alphabetical list of account balances, all of which are normal, for Kasper Company on July 31, 2010, prepare a trial balance in proper form (the amount of Phil Kasper, Withdrawals must be computed) .

Accounts Payable $500

Accounts Receivable 200

Cash 80

Equipment 700

Phil Kasper, Capital 150

Phil Kasper, Withdrawals ?

Prepaid Advertising  20

Revenue Earned 400

Wages Expense 70

Wages Payable 50