Summary of Study Objectives

GENERAL LEDGER

(b)

Cash
Date
2011
Sept. 1
2
3
4
20
30

75

Explanation

No. 101
Credit

Balance

1,000
10,000
1,200
700
6,200

20,000
19,000
9,000
7,800
7,100
13,300

Prepaid Insurance

No. 130

Explanation
Date
2011
Sept. 4

Ref.

Debit

J1
J1
J1
J1
J1
J1

20,000

Ref.

Debit

Balance

1,200

1,200

Laundrv Equipment

No. 154

Explanation
Date
2011
Sept. 3

J1

Credit

Ref.

Debit

J1

25,000

Credit

Service Revenue
Date
Explanation
2011
Sept. 30

Ref.

Debit

J1

Notes Payable
Date
Explanation
2011
Sept. 3
Date

Date

2011
Sept. 1

Ref.

Debit

Balance

15,000

15,000

Credit

200

Explanation

Ref.

Debit

I I
J1

Explanation

Credit

20,000

Debit

1 1

700

J1

Credit

Advertising Expense
Date
Explanation
2011
Sept. 10

Ref.

J1

Debit

Ref.

J1

200
Balance

20,000

Balance

700

No. 610
Credit

Balance

200

200

Rent Expense
Date
Explanation
2011
Sept. 2

Balance

No. 332

Ref.

No. 201

No. 311

Dividends

2011
Sept. 30

6,200

Credit

Share Capital-Ordinary

25,000

6,200

Explanation

J1

Balance

J1

I I

Date

No. 400

Debit

Accounts Pavable

Sept. 10

Balance

Credit

Ref.

No. 200

Debit

1,000

No. 729
Credit

Balance

1,000

CAMPUS LAUNDROMAT INC.

Trial Balance
September 30, 201 1

Debit
Prepaid Insurance
Laundry Equipment

Credit

25,000
200
20,000

Accounts Payable
Share Capital-Ordinary
Service Revenue
Advertising Expense

6,200
200
$41,400

$41,400

SUMMARY OF STUDY OBJECTIVES

1 Explain what an account is and how it helps in the
recording process. An account is a record of increases

and decreases in specific asset, liability,or equity item.

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PLUS

2 Define debits and credits and explain their use in

recording business transactions. The terms debit and
credit are synonymous with left and right. Assets, dividends,