Question

application problem 3 - 4.2 (static)
attempts score / 9

1. 3 - 4.2 application problem (lo3,
2. journalize the transactions 2. totals and proc reports

aug. 1 mikaela mundt invested $2,000.00 of her own money in the business. receipt no. 1
3 used business cash to purchase supplies costing $216.00. wrote check no. 1
4 wrote check no. 2 for insurance, $245.00
5 purchased supplies for $68.00 over the phone from southern supplies, promising to send the check next week. memo no. 1
11 sent check no. 3 to southern supplies, $68.00
12 sent a check for the electricity bill, $180.00. check no. 4
15 wrote $800.00 check to ms. mundt as a withdrawal of equity for personal use. used check no. 5
16 sold services for $412.00 to j. lepowsky, who agreed to pay for them within ten days. sales invoice no. 1
17 recorded cash sales of $1,179.00. calculator tape dated march. 17, t17
18 paid $132.00 for advertising. wrote check no. 6.
using the information provided for mundt services, journalize the transactions completed during august of the current year. use page 1 of the journal. remember to record appropriate source document numbers.
journal
date account title doc. no. post. ref. general debit credit sales credit cash debit credit

Explanation:

Step1: Record owner's investment

Debit Cash $2000$, Credit Owner's Equity $2000$, Doc. No. Receipt No. 1

Step2: Record supplies purchase with cash

Debit Supplies $216$, Credit Cash $216$, Doc. No. Check No. 1

Step3: Record insurance payment

Debit Pre - paid Insurance $245$, Credit Cash $245$, Doc. No. Check No. 2

Step4: Record supplies purchase on account

Debit Supplies $68$, Credit Accounts Payable $68$, Doc. No. Memo No. 1

Step5: Record payment to creditor

Debit Accounts Payable $68$, Credit Cash $68$, Doc. No. Check No. 3

Step6: Record electricity bill payment

Debit Utilities Expense $180$, Credit Cash $180$, Doc. No. Check No. 4

Step7: Record owner's withdrawal

Debit Owner's Withdrawals $800$, Credit Cash $800$, Doc. No. Check No. 5

Step8: Record credit sales

Debit Accounts Receivable - J. Lepowsky $412$, Credit Sales Revenue $412$, Doc. No. Sales Invoice No. 1

Step9: Record cash sales

Debit Cash $1179$, Credit Sales Revenue $1179$, Doc. No. Calculator tape dated March 17, T17

Step10: Record advertising expense

Debit Advertising Expense $132$, Credit Cash $132$, Doc. No. Check No. 6

DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	GENERAL DEBIT	GENERAL CREDIT	SALES CREDIT	CASH DEBIT	CASH CREDIT
Aug 1	Owner's Equity	Receipt No. 1			2000
Aug 3	Supplies	Check No. 1		216				216
Aug 3	Cash	Check No. 1			216			216
Aug 4	Pre - paid Insurance	Check No. 2		245				245
Aug 4	Cash	Check No. 2			245			245
Aug 5	Supplies	Memo No. 1		68
Aug 5	Accounts Payable	Memo No. 1			68
Aug 11	Accounts Payable	Check No. 3		68				68
Aug 11	Cash	Check No. 3			68			68
Aug 12	Utilities Expense	Check No. 4		180				180
Aug 12	Cash	Check No. 4			180			180
Aug 15	Owner's Withdrawals	Check No. 5		800				800
Aug 15	Cash	Check No. 5			800			800
Aug 16	Accounts Receivable - J. Lepowsky	Sales Invoice No. 1		412
Aug 16	Sales Revenue	Sales Invoice No. 1			412	412
Aug 17	Cash	Calculator tape dated March 17, T17				1179	1179
Aug 17	Sales Revenue	Calculator tape dated March 17, T17			1179	1179
Aug 18	Advertising Expense	Check No. 6		132				132
Aug 18	Cash	Check No. 6			132			132

Answer:

The journal entries are shown in the above - table format with each transaction properly recorded under the relevant account titles and with appropriate source document numbers.