1)

Journal Entries
Date Account Title and Post Debit Credit
Explanation Ref. $ $
August 1 Office Furniture 4700
Accounts Payable 4700
(To record Office Furniture
on account)
August 1 Cash 6100
Mark Diamond, Capital 6100
(To record cash invested into
business)
August 2 Cash 2550
Unearned Revenue 2550
(To record advance received
for future service)
August 3 Prepaid Rent 4650
Cash 4650
(To record six months’ rent
paid in advance )
August 4 Cash 2100
Service Revenue 2100
(To record cash received for
service provided )
August 7 Hotel Expenses 1050
Cash 1050
(To record payment of hotel
expenses)
August 15 Mark Diamond ,Withdrawal 600
Cash 600
(To record cash withdrawn
for personal use)
August 22 No Journal Entry required
for discussion about contract
August 31 Wage Expense 1210
Cash 1210
(To record wage expense
paid)

2) And 3)

Cash (101)
Debit   Credit
Capital 6100 Prepaid Rent 4650
Unearned Revenue 2550 Hotel Expenses 1050
Service Revenue 2100 Drawings 600
    Wages Expenses 1210
Balance 3240  

Office Furniture (161)

Debit   Credit
Accounts Payable 4700    
Balance 4700  

Accounts Payable (201)

 Debit   Credit
    Office Furniture 4700
Balance 4700

Mark Diamond, Capital (301)

Debit   Credit
    Cash 6100
Balance 6100

Service Revenue (401)

Debit   Credit
    Cash 2100
Balance 2100
Unearned 1700(b
Revenue )

Wage Expense (623)

Debit   Credit
Cash 1210    
Balance 1210  

Telephone Expense (688)

 Debit   Credit
Telephone Expense 230(d
Payable )  

Telephone Expense Payable

Debit Credit
Telephone
Expense 230 (d)

Prepaid Rent (131)

Debit   Credit
Cash 4650    
Balance 4650  
Rent Expense 1550 ©

Accumulated Depreciation, Office furniture (162)

Debit   Credit
(b)Depreciation 1476(b
Expense )
 Unearned Revenue (233)
Debit   Credit
    Cash 2550
Balance 2550
1700
Service Revenue (b)  

Mark Diamond, Withdrawal (302)

Debit   Credit
Cash 600    
Balance 600  

Depreciation Expenses, Office Furniture (602)

Debit   Credit
a) Accumulated 1476
Depreciation (a)  

Rent Expense (640)

Debit   Credit
1550
Prepaid Rent ©  
 Hotel Expense (696)
Debit   Credit
Cash 1050    
Balance 1050  

4)

UNADJUSTED TRIAL BALANCE

Account Title Debit Credit
Cash 3240  
Office Furniture 4700  
Prepaid Rent 4650  
Accumulated Depreciation    
Accounts Payable   4700
Unearned Revenue   2550
Capital   6100
Drawings 600  
Service Revenue   2100
Depreciation Expense    
Wage Expense 1210  
Rent Expense    
Telephone Expense    
Hotel Expense 1050  
Telephone Expense Payable    
Grand Total 15450 15450

5)
 Adjusting Journal Entries
Serial Account Title and Explanation Post Debit Credit
No. Ref. $ $
a) Depreciation Expense 1476
Accumulated Depreciation, Office Furniture 1476

(To record depreciation on Office Furniture)

b) Unearned Revenue 1700

Service Revenue 1700

(To record adjusting entry for earned portion of

unearned revenue)

c) Rent Expense 1550

Prepaid Rent 1550

(To record expired portion of prepaid rent)

d) Telephone Expense 230

Telephone Expense Payable 230

(To record telephone expense for august

month)
6)

Unadjusted Trial
Balance Adjustments Adjusted Trial Balance
Account Title Debit Credit Debit Credit Debit Credit
Cash 3240       3240  
Office Furniture 4700       4700  
Prepaid Rent 4650     1550 3100  
Accumulated Depreciation       1476   1476
Accounts Payable   4700       4700
Unearned Revenue   2550 1700     850
Capital   6100       6100
Drawings 600       600  
Service Revenue   2100   1700   3800
Depreciation Expense     1476   1476  
Wage Expense 1210       1210  
Rent Expense     1550   1550  
Telephone Expense     230   230  
Hotel Expense 1050       1050  
Telephone Expense Payable       230   230
Grand Total 15450 15450 4956 4956 17156 17156

OR
 Adjusted Trial
Balance
Account Title Debit Credit
Cash 3240  
Office Furniture 4700  
Prepaid Rent 3100  
Accumulated Depreciation   1476
Accounts Payable   4700
Unearned Revenue   850
Capital   6100
Drawings 600  
Service Revenue   3800
Depreciation Expense 1476  
Wage Expense 1210  
Rent Expense 1550  
Telephone Expense 230  
Hotel Expense 1050  
Telephone Expense Payable   230
1715
Grand Total 6 17156

7)
 Income Statement
Account Title Debit Credit
Service Revenue   3800
Depreciation Expense 1476  
Wage Expense 1210  
Rent Expense 1550  
Telephone Expense 230  
Hotel Expense 1050  
Grand Total 5516 3800
Net Loss   1716

Balance Sheet
Account Title Debit Credit
Cash 3240  
Office Furniture 4700  
Prepaid Rent 3100  
Accumulated
Depreciation   1476
Accounts Payable   4700
Unearned Revenue   850
Capital   6100
Drawings 600  
Telephone Expense
Payable   230
Net Loss 1716  
Grand Total  13356 13356 

8) Revenue of a company which shows in its Income statement shows that, that vary revenue is generated in that particular time period whether
it’s received or yet to be received in future. Cash may or may not equal to revenue generated in that time period.
Annexure:
Unadjusted Trial Adjusted Trial Income
Balance Adjustments Balance Statement Balance Sheet
 Debi Credi
Account Title Debit Credit t t Debit Credit Debit Credit Debit Credit
Cash 3240       3240       3240  
Office Furniture 4700       4700       4700  
Prepaid Rent 4650     1550 3100       3100  
Accumulated Depreciation       1476   1476       1476
Accounts Payable   4700       4700       4700
Unearned Revenue   2550 1700     850       850
Capital   6100       6100       6100
Drawings 600       600       600  
Service Revenue   2100   1700   3800   3800    
Depreciation Expense     1476   1476   1476      
Wage Expense 1210       1210   1210      
Rent Expense     1550   1550   1550      
Telephone Expense     230   230   230      
Hotel Expense 1050       1050   1050      
Telephone Expense
Payable       230   230       230
Grand Total 15450 15450 4956 4956 17156 17156 5516 3800 11640 13356
Net Loss               1716 1716  
Total                 13356 13356