How do you do this?

Problem Description

MONROE COLLEGE In

March

, Abby’s Employment Agency had the following transactions: 20XX March

1 Abby Todd invested $

5

,000 in the new employment agency. 4 Bought equipment for cash $200. 5

Earned employment fee for $200, but payment from Blue Co. will not be received until June. 6 Paid wages expenses of $

300

. 7 Abby Todd paid her home utility bill from the company checkbook, $74. 9 Placed Rick Wool at VCR Corporation, receiving $1,200 cash. 15 Paid cash for supplies, $200. 28 Telephone bill received but not paid, $180. 29 Advertising bill received but not paid, $

40

0

. The Chart of Accounts includes:

Cash

111

, Accounts Receivable 112,

Supplies

131

,

Equipment

141 Accounts Payable 211 A. Todd

Capital

311

, A. Todd Withdrawal 321, Employment Fees Earned 411, Wages Expense 511, Telephone Expense 521, Advertising Expense 531. Instructions: (Click on tabs below for different accounting records.) Your task is to:

1) Journalize. Record the transactions in the

General Journal

in date order.

2) Set up T-accounts in a ledger (already done).. 3) Record transactions amounts in the individual T-accounts ( Place the date of the transaction next to the entry. DR column entries, put date on left – CR column entries, put date on right). 3) Foot the T-accounts where appropriate and get the net balance for each account.

4) Prepare a

Trial Balance

and ensure that Total debits = Total credits.

Note re: Excel spreadsheet: General Journal
Input dates in date column as labels and input transaction amounts in DR/CR columns as numeric values General ledger T Accounts Input the dollar amounts as numeric values and input formulas to calculate column totals. Enter dates in the columns to the right and left of the entries in the T accounts. Trial Balance
Input net balances from the T accounts in to Trial Balance as numeric values and use a formula to get the total DR’s and total CR’s

T-Accounts

Cash 111 Equipment 141

321

511

4/4 2,000

400

4/7

300

112

211

521

Supplies 131 Capital 311

531

		ABBY’S EMPLOYMENT AGENCY
GENERAL LEDGER T ACCOUNTS
	Withdrawals		Wages expense
4/1	7,000		2,000		4/4		4/7
4/9	1,500	4/6
100
4/15
	Accounts receivable		Accounts payable	Employment fees earned 411		Telephone expense
	Advertising expense

Trial Balance

ABBY’S EMPLOYMENT AGENCY

Cash
Accounts receivable
Supplies
Equipment
Accounts payable
Capital
Withdrawals
Wages expense
Telephone expense
Advertising expense

TRIAL BALANCE
MARCH 31, 20XX		DEBIT		CREDIT
Employment fees earned
Totals

Income Statement

TOTAL

INCOME STATEMENT
SUB-				TOTAL

Statement of Owners Equity

TOTAL

STATEMENT OF	OWNER’S EQUITY
		SUB-TOTAL

Balance Sheet

SUB-TOTAL TOTAL OWNER’S EQUITY SUB-TOTAL TOTAL

BALANCE SHEET

LIABILITIES (PLUS)

ASSETS

General Journal

ABBY’S EMPLOYMENT AGENCY
40

	GENERAL JOURNAL
(Acct #)
DATE (letter)	Acct Title and Explanation	LP	Dr	Cr
35

Sheet2

GENERAL JOURNAL

DEBIT CREDIT

PETE’S DELIVERY SERVICE
DATE(Letter)	ACCOUNT TITLES AND EXPLANATION	REF.