Introduction to Accounting 120
Unit Four: Debit And Credit TheoryAssignment 5Value 55
Group Members: and Date:
Complete Question I, Question II and Question III on this sheet. Save the document as U4A5 in your U: drive. Then complete Question IV and Question V (u4A4.xls). You will print all these files upon completion.
Question I Value 13
- Define
Journal—
Journal Entry—
Journalizing—
Book of Original Entry—
- Refer to the rules of journalizing when answering the following:
Where is the year always entered? Answer:
When do you re-enter the year? Answer:
Where is the month always entered? Answer:
When do you re-enter the month? Answer:
What is the rule for recording the day of a transaction? Answer:
Which accounts are recorded first when recording a journal entry? Answer:
Which accounts are recorded second when recording a journal entry? Answer:
- What is an opening entry? Answer:
- Provide two purposes of the journal. Answer:
Question IIValue 9
The general journal shown below contains a number of errors. Review the journal and prepare a list describing the mistakes.
Error List:
Question IIIValue 5
The following journal entries are not dated nor do they have explanations. The entries pertain to a motor repair shop owned and operated by Larry Nesbit. Examine the partial journal and prepare a list of possible transaction explanations.
1.
2.
3.
4.
5.
Question IVValue 20
Classics, a special event rental company, is owned and operated by Madeline Rouse. The accounts for her business are given below.
Bank
A/R D. Killen
A/R E. Taney
Supplies
Equipment
A/P City Cleaners
A/P Matrix Supply
M. Rouse, Capital
Journalize the following transactions for Classics in the two-column general journal provided (U4A5.xls).
Transactions
March
3Paid $300 to City Cleaners on account
6Paid $500 cash for monthly rent
9Provided tuxedos and gowns for a wedding. The customer paid $1 200 cash.
10The owner withdrew $250 cash for personal use.
15Received $300 from D. Killen as payment on account
20Paid $120 for repairs to chairs.
24Paid $300 for wages
28Paid $200 cash for supplies
Question VValue 8
Stephen Banks, a lawyer had decided to open his own business (Banks Law Office) on June 15, 200—. On that date, he has the following assets and liabilities.
Assets
Bank 3 200
Law Library4 000
Office Supplies250
Office Equipment9 300
Automobile17 500
Liabilities
Bank Loan9 850
Avery Supply Ltd.3 680
- Use Excel (U4A5.xls) and prepare a balance sheet for Stephen as of June 15.
- Record the beginning financial position of Stephen in the two-column journal on the proper worksheet of U4A5.xls