Travis Services is an office cleaning company. Consider Travis Services' transactions during its first month of operations, April, as described: Stanley Travis invested $18,680 in cash to form Travis Services. Performed services for a client on the account, $6,530. Purchased equipment with cash, $12,920. Performed services for a customer who paid cash, $7,150. Purchased supplies with cash, $3,480. Stanley withdrew $1,000 in cash from the company Use the following T accounts to record these transactions. You will need to record the transactions in the order in which they occurred (a through f). In each account, use the first available space (working from top to bottom) on the debit or credit side of the T account, whichever is appropriate.
Cash Dr. Cr.
Accounts Receivable Dr. Cr.
Supplies Dr. Cr.
Equipment Dr. Cr.
Fees Earned Dr. Cr.
S. Travis, Capital Dr. Cr.
S. Travis, Withdrawals Dr. Cr.
Travis Services is an office cleaning company. Consider Travis Services' transactions during its first month of operations, April, as described: Stanley Travis invested $18,680 in cash to form Travis Services. Performed services for a client on the account, $6,530. Purchased equipment with cash, $12,920. Performed services for a customer who paid cash, $7,150. Purchased supplies with cash, $3,480. Stanley withdrew $1,000 in cash from the company Use the following T accounts to record these transactions. You will need to record the transactions in the order in which they occurred (a through f). In each account, use the first available space (working from top to bottom) on the debit or credit side of the T account, whichever is appropriate.
| Cash | |||
|---|---|---|---|
| Dr. | Cr. | ||
| Accounts Receivable | |||
|---|---|---|---|
| Dr. | Cr. | ||
| Supplies | |||
|---|---|---|---|
| Dr. | Cr. | ||
| Equipment | |||
|---|---|---|---|
| Dr. | Cr. | ||
| Fees Earned | |||
|---|---|---|---|
| Dr. | Cr. | ||
| S. Travis, Capital | |||
|---|---|---|---|
| Dr. | Cr. | ||
| S. Travis, Withdrawals | |||
|---|---|---|---|
| Dr. | Cr. | ||
Related questions
Utilizing the revenue journal below, journalize the following five transactions of Porshe Creations:
| (a) | On March 20, Porshe sells 25 cell phone covers to Xtreme at $4.50 per cover on invoice 887. | |
| (b) | On March 21, Porshe sells 5 cell phone covers to Sidekick for $7.50 per cover on invoice 908. | |
| (c) | On March 22, Porshe sells 18 cell phone covers to Rock-On at $4.25 per cover on invoice 938. | |
| (d) | On March 26, Porshe sells 200 cell phone covers to Micro at $3.75 each on invoice 959. | |
| (e) | On March 29, Porshe sells 6 cell phone covers to Charmers for $8.35 each on invoice 997. |
â
| â | ||||
| Revenue Journal | Page 15 | |||
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| Invoice |
| Post. | Accts. Rec. Dr. |
Utilizing the revenue journal below, journalize the following five transactions of Porshe Creations:
| (a) | On March 20, Porshe sells 25 cell phone covers to Xtreme at $4.50 per cover on invoice 887. | |
| (b) | On March 21, Porshe sells 5 cell phone covers to Sidekick for $7.50 per cover on invoice 908. | |
| (c) | On March 22, Porshe sells 18 cell phone covers to Rock-On at $4.25 per cover on invoice 938. | |
| (d) | On March 26, Porshe sells 200 cell phone covers to Micro at $3.75 each on invoice 959. | |
| (e) | On March 29, Porshe sells 6 cell phone covers to Charmers for $8.35 each on invoice 997. |
â
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| Revenue Journal | Page 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Invoice |
| Post. | Accts. Rec. Dr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| The following purchase transactions occurred during August for Backcountry Kayak Excursions.
â Record these transactions in a purchase journal.
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If a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal are used, indicate the journal in which each of the following transactions should be recorded:
| (a) | Investment of additional cash in the business by the owner |
| (b) | Rendering of services for cash |
| (c) | Rendering of services on account |
| (d) | Receipt of cash on account from a customer |
| (e) | Sale of office supplies for cash, at cost, to a neighboring business |
| (f) | Adjustment to record supplies used at the end of the year |
| (g) | Closing of drawing account at the end of the year |
Required information
Problem 7-1A Special journals, subsidiary ledgers, trialbalance-perpetual LO C3, P1, P2
[The following information applies to the questionsdisplayed below.]
Church Company completes these transactions and events during Marchof the current year (terms for all its credit sales are 3/10,n/30).
| Mar. | 1 | Purchased $40,000 of merchandisefrom Van Industries, invoice dated March 1, terms 3/15, n/30. | ||||
| 2 | Sold merchandise on credit to MinCho, Invoice No. 854, for $16,000 (cost is $8,000). | |||||
| 3 | (a) | Purchased $1,200 of office supplieson credit from Gabel Company, invoice dated March 3, terms n/10EOM. | ||||
| 3 | (b) | Sold merchandise on credit to LindaWitt, Invoice No. 855, for $8,000 (cost is $4,000). | ||||
| 6 | Borrowed $72,000 cash from FederalBank by signing a long-term note payable. | |||||
| 9 | Purchased $20,000 of officeequipment on credit from Spell Supply, invoice dated March 9, termsn/10 EOM. | |||||
| 10 | Sold merchandise on credit toJovita Albany, Invoice No. 856, for $4,000 (cost is $2,000). | |||||
| 12 | Received payment from Min Cho forthe March 2 sale less the discount. | |||||
| 13 | (a) | Sent Van Industries Check No. 416in payment of the March 1 invoice less the discount. | ||||
| 13 | (b) | Received payment from Linda Wittfor the March 3 sale less the discount. | ||||
| 14 | Purchased $34,000 of merchandisefrom the CD Company, invoice dated March 13, terms 3/10, n/30. | |||||
| 15 | (a) | Issued Check No. 417, payable toPayroll, in payment of sales salaries expense for the first half ofthe month, $15,200. Cashed the check and paid the employees. | ||||
| 15 | (b) | Cash sales for the first half ofthe month are $64,000 (cost is $51,200). (Cash sales are recordeddaily, but are recorded only twice here to reduce repetitiveentries.) | ||||
| 16 | Purchased $1,720 of store supplieson credit from Gabel Company, invoice dated March 16, terms n/10EOM. | |||||
| 17 | Received a $3,400 credit memorandumfrom CD Company for the return of unsatisfactory merchandisepurchased on March 14. | |||||
| 19 | Received a $600 credit memorandumfrom Spell Supply for office equipment received on March 9 andreturned for credit. | |||||
| 20 | Received payment from Jovita Albanyfor the sale of March 10 less the discount. | |||||
| 23 | Issued Check No. 418 to CD Companyin payment of the invoice of March 13 less the March 17 return andthe discount. | |||||
| 27 | Sold merchandise on credit toJovita Albany, Invoice No. 857, for $12,000 (cost is $4,800). | |||||
| 28 | Sold merchandise on credit to LindaWitt, Invoice No. 858, for $4,800 (cost is $1,920). | |||||
| 31 | (a) | Issued Check No. 419, payable toPayroll, in payment of sales salaries expense for the last half ofthe month, $15,200. Cashed the check and paid the employees. | ||||
| 31 | (b) | Cash sales for the last half of themonth are $70,400 (cost is $42,240). | ||||
| 31 | (c) | Verify that amounts impactingcustomer and creditor accounts were posted and that any amountsthat should have been posted as individual amounts to the generalledger accounts were posted. Foot and crossfoot the journals andmake the month-end postings. |
Assume the following ledger account amounts Inventory (March 1 beg.bal. is $63,000), Z. Church, Capital (March 1 beg. bal. is $63,000)and Church Company uses the perpetual inventory system.
Problem 7-1A Part 2
Required:
2-a. Enter the transactions in a sales journal.
2-b. Enter the transactions in a purchasesjournal.
2-c. Enter the transactions in a cash receiptsjournal.
2-d. Enter the transactions in a cashdisbursements journal.
2-e. Enter the transactions in a generaljournal.
Enter the transactions in a sales journal.
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Enter the transactions in a purchases journal.
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Enter the transactions in a cash receipts journal.
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Enter the transactions in a cash disbursements journal.
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Enter the transactions in a general journal.
Journal Entry Worksheet
Received a $3,400 credit memorandum from CD Company for thereturn of unsatisfactory merchandise purchased on March 14.
Received a $600 credit memorandum from Spell Supply for officeequipment received on March 9 and returned for credit.
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*Enter debits before credits
Enter the transactions in a general journal.
Journal Entry Worksheet
Received a $3,400 credit memorandum from CD Company for thereturn of unsatisfactory merchandise purchased on March 14.
Received a $600 credit memorandum from Spell Supply for officeequipment received on March 9 and returned for credit.
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*Enter debits before credits
