The following balances appeared in the general ledger accounts of Fenton Table Rentals Corporation at April…
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Question “The following balances appeared in the general ledger accounts of Fenton Table Rentals Corporation at April…”
The following balances appeared in the general ledger accounts of Fenton Table Rentals Corporation at April 1, 2019 April 1 balances DebitCredit Cash Accounts receivable Prepaid rent Unused supplies Accounts payable Common stock 5,000 5,000 200 500 4,000 6,700 Required: 1 Prepare journal entries to record the April transactions shown on the “Transactions” page (see tab below). Incl lude general ledger account numbers. 2 Post the transactions to the T- accounts. 3 Prepare al alance at April 30, 2019 4 Prepare an interim income statement and statement of changes in equity for the month ended April 30, 2019 and interim balance sheet at April 30,
April a. M. C. Transaction Amount Collected cash owed by a customer Billed customers for tables rented to date Paid the following expenses $1,000 1,000 Advertising 1,000 500 Telephone d. Paid part of the accounts payable owing at April 1 e. Received a bill for April truck repair expenses Collected cash owed by a customer Billed customers for tables rented to date Transferred prepaid rent to rent expense Counted supplies and found this amount still on hand (recorded the amount used as an expense) 500 2,900 2,000 60 300 700 i. Paid a dividend
Fenton Table Rentals Corporation Income Statement For the Month Ended April 30,2019 Fenton Table Rentals Corporation Balance Sheet At April 30, 2019 Revenue Assets Expenses Liobiities Stockholders’Equity Fenton Table Rentals Corporation Statement of Changes in Equity For the Month Ended April 30,2019 Common stock Retained Total earmings equity Opening balance Ending balance
Answer
1) Journal Entries: | |||
Date | Accounts Title | Debit $ | Credit $ |
a | Cash | 1000 | |
AR | 1000 | ||
(being collection from AR) | |||
b | AR | 1000 | |
Sales Revenue | 1000 | ||
(being credit for table rent) | |||
c | Advertising exp. | 100 | |
Salaries exp. | 1000 | ||
telephone exp. | 500 | ||
Cash | 1600 | ||
(being expenses paid) | |||
d | AP | 800 | |
Cash | 800 | ||
(being payables paid) | |||
e | Repair exp | 500 | |
AP | 500 | ||
(being truck repair exp. Bill received) | |||
f | Cash | 2900 | |
AR | 2900 | ||
(being collection from AR) | |||
g | AR | 2000 | |
Sales Revenue | 2000 | ||
(being credit for table rent) | |||
h | Rent exp. | 60 | |
Prepaid rent | 60 | ||
(being rent expense booked) | |||
i | Supplies exp | 200 | |
Unused Supplies | 200 | ||
(being supplies expense booked 500-300=200) | |||
j | Dividend | 700 | |
Cash | 700 | ||
(being dividend paid) | |||
2) T- Accounts: | |||
Cash a/c’ | |||
Debit | Amount $ | Credit | Amount $ |
OB | 5000 | c | 100 |
a | 1000 | c | 1000 |
f | 2900 | c | 500 |
d | 800 | ||
j | 700 | ||
CB | 5800 | ||
Total | 8900 | Total | 8900 |
AR a/c | |||
OB | 5000 | a | 1000 |
b | 1000 | f | 2900 |
g | 2000 | CB | 4100 |
Prepaid rent a/c | |||
OB | 200 | h | 60 |
CB | 140 | ||
Unused Supplies a/c | |||
OB | 500 | i | 200 |
CB | 300 | ||
AP a/c | |||
d | 800 | OB | 4000 |
CB | 3700 | e | 500 |
Common stock a/c | |||
OB | 6700 | ||
Sales Revenue a/c | |||
CB | 3000 | b | 1000 |
g | 2000 | ||
Advertising Exp. a/c | |||
c | 100 | ||
Salaries exp a/c | |||
c | 1000 | ||
Telephone exp a/c | |||
c | 500 | ||
Repair exp a/c | |||
e | 500 | ||
Rent Exp. A/c | |||
h | 60 | ||
Supplies exp a/c | |||
i | 200 | ||
Dividend a/c | |||
j | 700 | ||
3) Trial Balance: | ||
Accounts Title | Debit $ | Credit $ |
Cash | 5800 | |
AR | 4100 | |
Prepaid Rent | 140 | |
Unused Supplies | 300 | |
AP | 3700 | |
CS | 6700 | |
Revenue | 3000 | |
Adver exp | 100 | |
Sala exp | 1000 | |
Telep exp | 500 | |
Repai exp | 500 | |
Rent exp | 60 | |
Supply exp | 200 | |
Dividend | 700 | |
Total | 13400 | 13400 |
4) Income Statement: | |||
Amount $ | |||
Revenues | 3000 | ||
Less:Expenses: | |||
Advert | 100 | ||
Salaries | 1000 | ||
Telephone | 500 | ||
Repair | 500 | ||
Rent | 60 | ||
supplies | 200 | ||
total expenses | 2360 | ||
Net Income | 640 | ||
Statement of Equity changes: | |||
CS | RE | Total | |
OB | 6700 | 0 | 6700 |
Add during April | 0 | 640 | 640 |
Less during April | 0 | -700 | -700 |
CB | 6700 | -60 | 6640 |
Balance Sheet on April 30: | |||
Assets : | Amount $ | ||
Cash | 5800 | ||
AR | 4100 | ||
Prepaid Rent | 140 | ||
Unused Supplies | 300 | ||
Current Assets | 10340 | ||
Fixed Assets | 0 | ||
Total Assets | 10340 | ||
Liabilities and Capital: | Amount $ | ||
Current Liabilities AP | 3700 | ||
CS | 6640 | ||
Total Liabilities and Capital | 10340 |
Conclusion
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