Financial Accounting: An Integrated Statements Approach, 2nd Edition

2. Post the journal entries to T accounts, placing the appropriate letter to the left of each amount
   to identify the transactions. Determine the account balances, after all posting is complete.


3. Prepare a trial balance as of March 31, 2006.


4. Determine the following:
   a.Amount of total revenue recorded in the ledger.
   b.Amount of total expenses recorded in the ledger.
   c. Assuming that no adjustments are necessary, what is the amount of net income for
   March?

On July 1, 2006, Leon Cruz established an interior decorating business, Ingres Designs. During the

remainder of the month, Leon Cruz completed the following transactions related to the business:

July 1 Leon transferred cash from a personal bank account to an account to be used for

the business in exchange for capital stock, $18,000.

5 Paid rent for the period of July 5 to the end of the month, $1,500.

10 Purchased a truck for $15,000, paying $5,000 cash and giving a note payable for

the remainder.

13 Purchased equpment on account, $4,500.

14 Purchased supplies for cash, $975.

15 Paid annual premiums on property and casualty insurance, $3,000.

15 Received cash for job completed, $4,100.

21 Paid creditor a portion of the amount owed for equipment purchased on July 13,

$2,400.

24 Recorded jobs completed on account and sent invoices to customers, $6,100.

26 Received an invoice for truck expenses, to be paid in August, $580.

27 Paid utilities expense, $950.

27 Paid miscellaneous expense, $315.

29 Received cash from customers on account, $3,420.

30 Paid wages of employees, $2,500.

31 Paid dividends, $2,000.

Instructions

1. Journalize each transaction in a two-column journal, referring to the following chart of
   accounts in selecting the accounts to be debited and credited.

Cash Capital Stock

Accounts Receivable Dividends

Supplies Fees Earned

Prepaid Insurance Wages Expense

Equipment Rent Expense

Truck Utilities Expense

Notes Payable Truck Expense

Accounts Payable Miscellaneous Expense

2. Post the journal to a ledger of T accounts. For accounts with more than one posting, determine
   the account balance.


3. Prepare a trial balance for Ingres Designs as of July 31, 2006.

Socket Realty acts as an agent in buying, selling, renting, and managing real estate. The account

balances at the end of May 2007 of the current year are as shown at the top of the following

page:

196 Chapter 4 Accounting Information Systems

Problem 4-2A

Journal entries and trial

balance

Goal 3

3. Total debit column,
   $40,880

GENERAL LEDGER

Problem 4-3A

Journal entries and trial

balance

Goal 4