Accounting Help-Preparing and posting journal entries; and preparing a trial balance.?
Shelton Engineering completed the following transaction in the month of June.
Received a bill for rent of equipment that was used on a recently completed job. The 1,200 rent must be paid within 30 days.
Collected 7,200 cash in partial payment from the client described in transaction (g)
transaction (G)- Completed 12,000 of engineering services for a client . This amount is to be received in 30 days.
Paid 1,500 cash for wages to a drafting assistant
Paid 2,250 cash to settle the account payable created in transaction (h)
Transaction (H)- Purchased 2,250 of additional office equipment on credit.
Paid 675 cash for minor repairs to the drafting equipment
Shelton withdrew 9,360 cash for personal use
Paid 1,500 cash for wages to a drafting assistant
Paid 3,000 cash for advertisement in the local newspaper during June.
It looks like you have the same homework as I do. Firt, ask your instructor for the Excel Templlates (Master Templates) for accounting.
These should consist of a general journal, trial balance, worksheet, T-accounts, general ledger and more. In one of your chapters there is an example of which items (i.e. assets, liabilities, equity, revenue, and expenses) should be credited or debited.
Post those to the general journal,then the T-accounts, then the trial balance. Examples should be given within your chapter, as well. I just referenced off of those examplles given.
Hope this helps!
To prepare and post journal entries and prepare a trial balance for Shelton Engineering for the month of June, you would follow these steps:
1. Identify and analyze the transactions: Read through the given transactions and identify the accounts involved, which could include rent, cash, accounts receivable, wages payable, accounts payable, office equipment, drawing, advertising expense, etc.
2. Determine the type of each transaction: Analyze each transaction to determine if it is an asset, liability, equity, revenue, or expense transaction.
3. Prepare the journal entries: Use the double-entry accounting system to prepare the journal entries for each transaction based on the following rules:
- Debit the increase in assets and expenses
- Credit the decrease in assets, liabilities, and equity, and increase in revenues
Based on the given transactions, here are the journal entries:
a) Received a bill for rent of equipment that was used on a recently completed job ($1,200 due in 30 days):
Rent Expense Dr. $1,200
Accounts Payable Cr. $1,200
b) Collected $7,200 cash in partial payment from the client:
Cash Dr. $7,200
Accounts Receivable Cr. $7,200
c) Completed $12,000 of engineering services for a client (to be received in 30 days):
Accounts Receivable Dr. $12,000
Service Revenue Cr. $12,000
d) Paid $1,500 cash for wages to a drafting assistant:
Wages Expense Dr. $1,500
Cash Cr. $1,500
e) Paid $2,250 cash to settle the accounts payable:
Accounts Payable Dr. $2,250
Cash Cr. $2,250
f) Purchased $2,250 of additional office equipment on credit:
Office Equipment Dr. $2,250
Accounts Payable Cr. $2,250
g) Paid $675 cash for minor repairs to the drafting equipment:
Repairs Expense Dr. $675
Cash Cr. $675
h) Shelton withdrew $9,360 cash for personal use:
Drawing Dr. $9,360
Cash Cr. $9,360
i) Paid $1,500 cash for wages to a drafting assistant:
Wages Expense Dr. $1,500
Cash Cr. $1,500
j) Paid $3,000 cash for advertising in the local newspaper:
Advertising Expense Dr. $3,000
Cash Cr. $3,000
4. Post the journal entries to the general ledger: Transfer each journal entry to the appropriate accounts in the general ledger. This will ensure that all transactions are recorded in their respective accounts.
5. Prepare the trial balance: Add up the ending balances of all accounts (including both debit and credit balances) and list them in a trial balance. The total of the debit and credit columns should be equal.
Here is an example of a trial balance based on the given transactions:
Account Debit ($) Credit ($)
------------------------------------------------------------
Rent Expense 1,200
Accounts Payable 2,250
Accounts Receivable 12,000 7,200
Wages Expense 3,000 1,500
Cash 6,125
Service Revenue 12,000
Office Equipment 2,250
Repairs Expense 675
Drawing 9,360
Advertising Expense 3,000
------------------------------------------------------------
Total 31,125 31,125
Now you have prepared and posted the journal entries and prepared a trial balance for Shelton Engineering for the month of June.