Professional Documents
Culture Documents
1 Transactions for the Mariam Company for the month of October are presented
below.
1/10. Invested an additional $180,000 cash in the business.
2/10. Purchased land costing $80,000 for cash.
3/10. Purchased equipment costing $18,000 for $10,000 cash and the remainder on credit.
4/10. Purchased supplies on account for $7,000.
5/10. Paid $10,000 for a one-year insurance policy.
6/10. She hires five employees to begin work on May 2. Each employee is to receive a weekly
salary of $ 500 for a 5-day work week, payable every 2 weeks-first payment made on May 16.
7/10. Received $20,000 cash for services performed.
8/10. Received $45,000 for services previously performed on account.
9/10. Paid wages to employees for $25,000.
10/10. Exchange the manager of department A to the department D.
11/10. Mariam withdrew $15,000 cash from the business.
12/10. Paid $5,000 for equipment costing transaction 3.
13/10. Purchased car costing $30,000 for $20,000 cash and the remainder by signing a 3-
month note payable.
Instructions
Journalize each transaction and ending balance of cash & Accounts Payable.
The answer
1/10. Cash ............................................................................................... 180,000
Mariam, Capital ....................................................................
180,000
2/10. Land ............................................................................................... 80,000
Cash ....................................................................................... 80,000
3/10. Equipment ...................................................................................... 18,000
Cash ........................................................................................ 10,000
Accounts Payable ................................................................... 8,000
4/10. Supplies .......................................................................................... 7,000
Accounts Payable ................................................................... 7,000
5/10. Prepaid Insurance ........................................................................... 10,000
Cash .......................................................................................... 10,000
6/10. Not recorded
7/10. Cash ............................................................................................... 20,000
Service Revenue .................................................................... 20,000
8/10. Cash ............................................................................................... 45,000
Accounts Receivable .............................................................. 45,000
9/10. Wages Expense .............................................................................. 25,000
Cash ........................................................................................ 25,000
10/10. Not recorded
11/10. Mariam, Drawing ....................................................................... 15,000
Cash ..................................................................................... 15,000
12/10. Accounts Payable ......................................................................... 5,000
Cash .................................................................................... 5,000
13/10. Car ................................................................................... 30,000
Cash ..................................................................................... 20,000
note Payable ........................................................................ 10,000
Cash
DR CR
(1/10) 180,000 (2/10) 80,000
(7/10) 20,000 (3/10) 10,000
(8/10) 45,000 (510) 10,000
(9/10) 25,000
(11/10) 15,000
(12/10) 5,000
(13/10) 20,000
Ending balance 80,000
Accounts Payable.
DR CR
(12/10) 5,000 (3/10) 8,000
(4/10) 7,000