Question :
179. On January 1, 2010, Cary Parsons established a catering service. : 1251621
179. On January 1, 2010, Cary Parsons established a catering service. Listed below are accounts she would like to open in the general ledger. List the accounts in the order in which they should appear in the ledger and propose a two-digit account numbering scheme that is consistent with the rules of a proper chart of accounts.
1.Cash
2.Supplies
3.Equipment
4.Accounts Payable
5.Capital Stock
6.Wages Expense
7.Rent Expense
8.Truck
9.Utilities Expense
10.Dividends
11.Truck Expense
12.Prepaid Insurance
13.Fees Earned
14.Miscellaneous Expense
15.Insurance Expense
16.Notes Payable
17.Retained Earnings
18.Accounts Receivable
11 Cash12 Accounts Receivable13 Supplies14 Prepaid Insurance15 Equipment16 Truck21 Accounts Payable22 Notes Payable31 Capital Stock32 Retained Earnings33 Dividends41 Fees Earned51 Wages Expense52 Rent Expense53 Utilities Expense54 Truck Expense55 Insurance Expense56 Miscellaneous Expense
180. On September 1st, Erika Company purchased land for $47,500 cash. Prepare the journal entry to record this transaction.
181. (a) On October 10th, Nikle Company purchased supplies worth $2,750 on account. Prepare the journal entry to record this transaction.(b) Nikle Company paid for the supplies purchased in (a) on October 25th. Prepare the journal entry to record this transaction.
182. On October 17th, Nikle Company purchased a building and a plot of land for $750,000. The building was valued at $500,000 while the land carried a value of $250,000. Nikle paid $300,000 down in cash and signed a note payable for the balance. Prepare the journal entry to record this transaction.
183. On November 1st, Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land. Prepare the journal entry to record this transaction.
184. On January 7th, Damien Lawson deposited $95,000 in a bank account in the name of JumpStart in return for shares of stock in the corporation. Prepare the journal entry to record this transaction.
185. On January 8th, JumpStart purchased $20,000 worth of office equipment. Prepare the journal entry to record this transaction.
186. On August 30th, JumpStart paid numerous bills which include: Payment to the landlord for August rent, $950 Payment to the Gas & Electric Company for August’s bill, $525 Payment of employee wages for the last half of August, $1,880 Payment of shopping center’s parking lot cleaning fee, $275Journalize these payments as one compound journal entry.
187. On October 30th, JumpStart paid its only stockholder, Damien Lawson, a $3,300 cash dividend. Journalize this event.
188. Prepare a journal entry for the purchase of a truck on April 4 for $85,700, paying $15,000 cash and the remainder on account.
189. Prepare a journal entry on October 12 for the fees earned on account, $14,600.
190. Prepare a journal entry on March 27 for the payment of $8,000 in dividends.
191. State for each account whether it is likely to have from normal business operations (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. Also, indicate the normal balance of each account.
1.Fees Earned4.Supplies
2.Utilities Expense5.Cash
3.Accounts Payable6.Accounts Receivable
1. Credit entries only, normal credit balance2. Debit entries only, normal debit balance3. Both debit and credit entries, normal credit balance4. Both debit and credit entries, normal debit balance5. Both debit and credit entries, normal debit balance6. Both debit and credit entries, normal debit balance
