For my assignment I was asked to complete a journal for the Portand After School Program. I have completed it, but I know I did something wrong because when I try to do the second part which is a trial balance it is not balancing out right. can some one please help me correct my mistakes?
(a) July 1, 20XX— Received unrestricted donation check in the amount of $15,000 from the Multnomah County Department of Health and Human Services.
Debited Cash $15,000
Credited Revenue $15,000
(b) July 19, 20XX—Paid Great Northwest Insurance Company $9,000 for six more
months of fire and liability insurance coverage.
Debited Prepaid Insurance $9,000
Credited Cash $9,000
(c) July 15, 20XX—Paid Portland Arts & Crafts Company $3,000 for additional arts and crafts supplies.
Debited Arts & Craft Supplies $3,000
Credited Cash $3,000
(d) July 15, 20XX—Transferred temporarily restricted funds in the amount of $3,000 from investments to pay for additional arts and crafts supplies.
Debited Investments $3,000
Credited Cash $3,000
(e) July 30, 20XX—Paid Oregon Sporting Goods $5,000 for additional recreational equipment.
Debited Recreation Equipment $5,000
Credited Cash $5,000
(f) December 31, 20XX—Received fees from parents in the amount of $40,000.
Debited Cash $40,000
Credited Revenue $40,000
(g) December 31, 20XX—To account for $1,750 in fees from parents earned in the first six months of operations, but collected in the second six months.
Debited Accounts Receivable $1,750
Credited Revenue $1,750
(h) December 31, 20XX—To account for $3,000 in parent fees earned in the second six months of operations, but not yet collected.
Debited Accounts Receivable $3,000
Credited Revenue $3,000
(i) December 31, 20XX—To account for expenses (John’s Deli) in the amount of $1,500 incurred during the first six months of operations, but paid in the second six months.
Debited Expense $1,500
CreditAccount Payable $1,500
(j) December 31, 20XX—Paid Portland Gas & Electric Company $7,500 for utilities.
Debited Expense $7,500
Credited Cash $7,500
(k) December 31, 20XX—Paid salaries and employee-related expenses in the amount of $55,000.
Debited Expense $55,000
Credited Cash $55,000
(l) December 31, 20XX—Paid Pacific Bell Telephone Company $750 for telephone services.
Debited Expense $750
Credited Cash $750
(m) December 31, 20XX—To expense prepaid insurance in the amount of $9,000.
Debit Expense $9,000
Credited Prepaid Insurance $9,000
(n) December 31, 20XX—To expense arts and crafts supplies in the amount of $2,000.
Debited Expense $2,000
Credited Arts Craft Supplies $2,000
The ones that I think are wrong are g, h, and i. Thanks for your help!
For (g)you should Debit Cash because the money was collected,
For (h)you are right
For (i)you should Credit Cash because the amount was paid.
For the rest of the transactions I didn't notice anything wrong
Hopefully your trial balance checks out, but i recommend checking it more than once because the trial balance is tricky, at least it is for me.
That is where I am stuck can someone help me???
this is what I got so far can someone help me???
Journal of the Portland After School Program
July 1, 20XX - December 31, 20XX
a) July 1, 20XX - Received unrestricted donation check in the amount of $15,000 from the Multnomah County Department of Health & Human Services.
Debited Cash . . . . . . . . . . . . . . . . . . . $ 15,000
Credited Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,000
b) July 19, 20XX - Paid Great Northwest Insurance Company $9,000 for six more months of fire and liability insurance coverage.
Debited Prepaid Insurance . . . . . . . . . $ 9,000
Credited Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,000
c) July 15, 20XX - Paid Portland Arts & Crafts Company $3,000 for additional arts and crafts supplies.
Debited Arts & Crafts Supplies. . . . . .$ 3,000
Credited Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000
d) July 15, 20XX - Transferred temporarily restricted funds in the amount of $3,000 from investments to pay for additional arts and crafts supplies.
Debited Cash. . . . . . . . . . . . . . . . . . $ 3,000
Credited Investments . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000
e) July 30, 20XX - Paid Oregon Sporting Goods $5,000 for additional recreational equipment.
Debited Expenses. . . . . . . . . . . . . . . . $ 5,000
Credited Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,000
f) December 31, 20XX - Received fees from parents in the amount of $40,000.
Debited Cash . . . . . . . . . . . . . . . . . . . $ 40,000
Credited Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,000
g) December 31, 20XX - To account for $1,750 in fees from parents earned in the first six months of operations, but collected in the second six months.
Debited Cash. . . . . . . . . . . . . . .. . . . . $ 1,750
Credited Accounts Receivable . . . . . . . . . . . . . . . . . . . $ 1,750
h) December 31, 20XX - To account for $3,000 in parent fees earned in the second six months of operations, but not yet collected.
Debited Accounts Receivable. .. . . . . . . $ 3,000
Credited Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000
I) December 31, 20XX - To account for expenses (John’s Deli) in the amount of $1,500
Incurred during the first six months of operations, but paid in the second six months.
Debited Accounts Payable . . . . . . . . . $ 1,500
Credited Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,500
j) December 31, 20XX - Paid Portland Gas & Electric Company $7,500 for utilities.
Debited Expenses . . . . . . . . . . . . . . . . $ 7,500
Credited Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,500
k) December 31, 20XX - Paid salaries and employee related expenses in the amount of
$55,000.
Debited Expenses . . . . . . . . . . . . . . . $ 55,000
Credited Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 55,000
l) December 31, 20XX - Paid Pacific Bell Telephone Company $750 for telephone services.
Debited Expenses . . . . . . . . . . . . . . . . $ 750
Credited Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 750
m) December 31, 20XX - To expense prepaid insurance in the amount of $ 9,000
Debited Expenses . . . . . . . . . . . . . . . . $ 9,000
Credited Prepaid Insurance. . . . . . . . . . . . . . . . . . . . $ 9,000
n) December 31, 20XX - To expense arts and crafts supplies in the amount of. $ 2,000
Debited Expenses . . . . . . . . . . . . . . . $ 2,000
Credited Arts & Crafts Supplies . . . . . . . . . . . . . . . . $ 2,000
Exercise 4.2
Portland After School Program
General Ledger
(July 1, 20XX - December 31, 20XX)
CASH NET ASSETS
_________________________________ ___________________________________
64,500
(A) 15,000 (b) 9,000
(d) 3,000 (C) 3,000
(f) 40,000 (E) 5,000
(g) 1,750 (I) 1,500
(j) 7,500
(k) 55,000
(l) 750
_____________________________
_____________________________
PREPAID INSURANCE
_____________________________
0
(b) 9,000 (m) 9,000
_____________________________
0
ARTS & CRAFTS SUPPLIES INVESTMENTS
__________________________________ ______________________________________
(c) 3,000 (n) 2,000 (d) 3,000
__________________________________ ______________________________________
_________________________________ _______________________________________
ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE
__________________________________ _____________________________________
(h) 3,000 (g) 1,500 (i) 1,500
_________________________________________________________________________________________________________ ______________________________________
_______________________________________________________________________
_______________________________________________________________________
REVENUE EXPENSE
_________________________________ ____________________________________
(a) 15,000
(f) 40,000 (e) 5,000
(h) 3,000 (j) 7,500
____________________________ (k) 55,000
(l) 750
(m) 9,000
(n) 2.000
________________________
Exercise 4.3
Portland After School Program
Trial Balance
December 31, 20XX
(For Second Six Months of Operation)
Debits (*) Credits (**)
Cash . . . . . . . . . . . . . . . . . . . . . . . 15,000
Arts and Crafts Supplies . . . . . . . .
Accounts Receivable . . . . . . . . . . .
Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments . . . . . . . . . . . . . . . . .
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0
Expenses . . . . . . . . . . . . . . . . . . .
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
___________ _________
___________ _________
___________ _________
Notes: (*) Accounts with debit balances. (**) Accounts with credit balances.
To correct your mistakes in the journal entries, let's review the entries in question (g), (h), and (i):
(g) December 31, 20XX—To account for $1,750 in fees from parents earned in the first six months of operations, but collected in the second six months.
Debited Accounts Receivable $1,750
Credited Revenue $1,750
(h) December 31, 20XX—To account for $3,000 in parent fees earned in the second six months of operations, but not yet collected.
Debited Accounts Receivable $3,000
Credited Revenue $3,000
(i) December 31, 20XX—To account for expenses (John’s Deli) in the amount of $1,500 incurred during the first six months of operations, but paid in the second six months.
Debited Expense $1,500
Credit Account Payable $1,500
Let's analyze each entry and correct any mistakes:
(g) To properly record fees earned in the first six months of operations but collected in the second six months, you should credit Accounts Receivable instead of Revenue. The entry should look like this:
Debit Accounts Receivable $1,750
Credit Revenue $1,750
(h) To account for $3,000 in parent fees earned in the second six months but not yet collected, you have correctly debited Accounts Receivable; however, you should not credit Revenue. Instead, you should leave the credit side blank as this is just an account adjustment. The entry should look like this:
Debit Accounts Receivable $3,000
(i) To account for expenses incurred during the first six months but paid in the second six months, you have correctly debited Expense. However, you should credit Accounts Payable (not Account Payable). The entry should look like this:
Debit Expense $1,500
Credit Accounts Payable $1,500
Now that you have corrected these journal entries, try creating the trial balance again.