Page

General Journal
Date Oct 1 Description Cash David Dolphin Initial capital investment 2 Cash Notes payable Borrowed from National Bank Rent Expense Cash October rent paid Furniture and Equipment Accounts payable Purchased furniture & equip on credit Supplies inventory Cash Purchased supplies with cash Cash Revenue Cash sales Salaries & Wages expense Cash Paid salaries and wages Prepaid insurance Cash Bought insurance for the year Accounts payable Cash Paid A/P for furniture & equipment Salaries & Wages expense Cash Paid salaries & wages Ref. 101 301 Debit 150000 Credit 150000

101 205

100000 100000

601 101

1000 1000

120 201

50000 50000

115 101

800 800

10

101 401

20000 20000

15

605 101

2000 2000

20

109 101

1200 1200

21

201 101

20000 20000

24

605 101

2500 2500

General Journal
Date 28 Description Cash Accounts Receivable Ref. 101 105 Debit 25000 28000 Credit

31

Revenue Sales by cash and on account Adjustments Insurance expense Prepaid insurance Used 1 month insurance Depreciation expense Accumulated depreciation furniture & equipment Record 1 month depreciation furniture & equipment Supplies expense Supplies inventory Record use of supplies inventory Bad Debt expense Allowance for doubtful accounts Will not collect from Ms. Phoebebankruptcy Unearned revenue Revenue Delivered product to prepaid customers

401

53000

610 109

100 100

31

615 121

417 417

31

620 115

150 150

31

625 106

4000 4000

(31

(220) 401

2300 2300

Adj

1-Record expired insurance for the month of October 2-Use straight-line depreciation and a 10 year estimated useful life to record depreciation for furniture and equipment no salvage valuerecord one months depreciation 3-$150 Supplies inventory were used 4-Phoebe owes $4000 but cannot pay due to bankruptcy ((5-Delivery of product to customers who prepaid $2300----this is the adjustment we did not record which would have been DR to Unearned Revenue and CR to Revenue))