P2-2A Lena Forn is licensed accountant.

During the first month of operations of her business,

Lena Fohn, AG, the following events and transactions occurred.
May 1 Sharedolders invested €20,000 cash in exchange for ordinary shares.
2 Hired a secretary-receptionist at a salary of €2,000 per month.
3 Purchased €1,500 of supplies on account from Hartig Supply Company
7 Paid office rent of €900 cash for the month.
11 Completed a tax assignment and biiled client €2,800 for services performed.
12 Received €3,500 advance on a management consulting engagement.
17 Received cash of €1,200 for service performed for Lucille Co.
31 Paid secretary-receptionist €2,000 salary for the month.
31 Paid 40% of balance due Hartig Supply Company
Lena uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126
Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Share Capital-
Ordinary, No. 400 Service Revenue, 726 Salaries and Wages Expense, and NO. 729 Rnt Expense.
Intructions
(a) Journalize the transactions.
(b) Post to the ledger accounts.
(c) Prepare a trial balance on May 31, 2017.
Answer:
(a) Jurnal

GENERAL JURNAL
DATE Account Titels And Explanation Ref. Debit Credit Balance
2017              
May 1 Cash 101 € 20.000 € - € 20.000
    Share Capital-Ordinary 311      
      (Issued shares for cash)        
               
  2 Salaries 726   € 2.000 € 18.000
    Cash 101      
(Paid secretary-
      receptionist)        
               
  3 Supplies 126     € 18.000
    Account Payable 201      
 (Purchased supplies on
      account from        
      Hartig Supply Company)        
               
  7 Rent Office 729   € 900 € 17.100
      Cash 101      
      (Paid May Rent)        
               
  11 Tax 112   € 2.800  
(Tax assignment and biiled
      client) 400 € 2.800   € 17.100
               
  12 Unearned Service Revenue 209 € 3.500   € 20.600
(advance on a
      management 101      
      consulting engagement)        
               
  17 Service Revenue 400 € 1.200   € 21.800
      Cash 101      
(service performed for
      Lucille Co)        
               
  31 Salaries   726   € 2.000 € 19.800
    Cash   101      
(Paid secretary-
      receptionist )        
               
  31 Supplies   126   € 600 € 19.200
Account
    Payable   201      
(Balance due Hartig
      Supply Company)        

(b) Ledger
CASH No. 101
Date Explanation Ref. Debit Credit Balance
May 1 Balance √ € 20.000
2 J1 0 € 2.000 € 18.000
3 J1 0 0 € 18.000
7 J1 0 € 900 € 17.100
11 J1 € 2800 € 2.800 € 17.100
12 J1 € 3.500 0 € 20.600
17 J1 € 1200 0 € 21.800
31 J1 0 € 2.000 € 19.800
31 J1 0 € 600 € 19.200
Cash No. 101
Date Explanation Ref. Debit Credit Balance
May 1 J1 € 20.000 € 20.000
2 J1 € 2.000 € 18.000
7 J1 € 900 € 17.100
11 J1 € 2.800 € 2.800 € 17.100
17 J1 € 1.200 € 18.300
Accounts Receivable No. 112
Date   Explanation Ref. Debit Credit Balance
May 11 J1 € 2.800 € 2.800

Equipment No. 126

Date   Explanation Ref. Debit Credit Balance
May 3 € 1.500 € 1.500
31 € 600 € 900

Account Payable No. 201

Date   Explanation Ref. Debit Credit Balance
May 3 € 1.500 € 1.500
31 € 600 € 2.100

Unearned Service Revenue No. 209

Date   Explanation Ref. Debit Credit Balance
May 12 J1 € 3.500 € 3.500

Share Capital-Ordinary No. 311

Date   Explanation Ref. Debit Credit Balance
May 1 J1 € 20.000 € 20.000

Services Revenue No. 400

Date   Explanation Ref. Debit Credit Balance
 May 17 J1 € 2.800 € 2.800

Salaries and Wages Expense No. 726

Date   Explanation Ref. Debit Credit Balance
May 2 J1 0 € 2.000 € 2.000
31 J1 0 € 2.000 € 4.000

Rent Expenses No. 729

Date   Explanation Ref. Debit Credit Balance
May 7 J1 900 € 900

(c) Trial Balance

LENA FORN
Trial Balance
May 31, 2017
  Debit Credit
€
Cash 17.700 0
Accounts Receivable € 2.800 0
Equipment 0 € 900
Accounts Payable € 2.100 0
Unearned Service
Revenue € 3.500 0
€
Share Capital-Ordinary 20.000 0
Service Revenue 0 € 2.800
Salaries and Wages
Expense 0 € 4.000
Rent Expense 0   € 900
€
  46.100 € 8.600
             

P2-5A The Classic Theater Ltd. Opened on April 1. All facilities were completed on March 31. At
this time, the ledger showed No. 101 Cash €6,000, No. 140 Land €10,000, No. 145 Buildings
(concession stand, projection room, ticket booth, and screen) €8,000, No. 157 Equipment
€6,000, No. 201 Accounts payable €2,000, No. 275 Mortgage payable €8,000, and No. 311
Shared Capital-Ordinary €20,000. During April, the following events and transactions occurred.
Apr. 2 Paid film rental of €800 on first movie.
3 Ordered two additional films at €1,000 each.
9 Received €1,800 cash from admissions.
10 Made €2,000 payment on mortgage and €1,000 foe accounts payable due.
11 Classic Theater contracted with D. Zarle Company to operate the concession stand.
Zarle is to pay 18% of the concession stand.
12 Paid advertising expenses €300.
20 Received one of the films ordered on April 3 ad was billed €1,000. Thw film will be
shown in April.
25 Received €5,500 cash from admissions.
29 Paid salaries €1,600.
30 Received statement from D. Zarle showing gross concession receipts of €1,200 and
the balace due The Classic Theater of €216 (€1,200 X 18%) for April. Zarle paid one-half
of the balace due and will remit the remainder on May 5.
30 Prepaid €1,300 rental on special film to b run in May.
In addition to the accounts identified above, the chart of accounts shows No. 112 Accounts
Receivable, No. 136 Prepaid Rent, No. 400 Service Revenue, No. 429 Rent Revenue, No. 610
Adverstising Expense, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
Intructions
(a) Enter the beginning balances is the ledger as of April 1. Insert a check mark (√ ¿in the
refence column of the ledger for the beginning balance.
(b) Journalize the April transacctions.
(c) Post the April journal entries to the ledger. Assume that all entries are posted from page
1 of the journal.
(d) Prepare a trial balance on April 30, 2017.

Answer:
(a) Beginning Balances
Cash No. 101
Date Explanation Ref. Debit Balance
April 1 √     € 6.000

Land No. 140

Date Explanation Ref. Debit Balance
April 1 √     € 10.000

Buidings No. 145

Date Explanation Ref. Debit Balance
April 1 √     € 10.000

Equipment No. 157

Date Explanation Ref. Debit Balance
April 1 √     € 6.000

Account Palyable No. 201

Date Explanation Ref. Debit Balance
April 1 √     € 2.000

Mortagage Payable No. 275

Date Explanation Ref. Debit Balance
April 1 √     € 8.000

Share Capital-Ordinary No. 311

Date Explanation Ref. Debit Balance
April 1 √     € 20.000

(b) Jurnal

GENERAL JURNAL
Date Account Title Ref Debit Credit
Apr-02 Film Rental Expense 729 € 800  
  Cash 101   € 800
         
Apr-03 Ordered Additional Films   € -  
         
Apr-09 Cash 101 € 1.800  
  Admission revenue 400   € 1.800
  (Received cash for services provided)      
         
Apr-10 Montgage Payable 275 € 2.000  
  Accounts Payable 201 € 1.000  
  Cash     € 3.000
  (Made payments on mortgage      
  and accounts payable)      
         
Apr-11 (contrac to operate concession stand)     € -
         
Apr-12 advertising expenses 610 € 300  
  Cash 101   € 300
  (Paid Advertising Expenses)      
         
Apr-20 Film rental expense 729 € 1.000  
  Accounts Payable 201   € 1.000
  (Rented film on account)      
         
Apr-25 Cash 101 € 5.500  
  Admission revenue 400   € 5.500
         
Apr-29 Salaries expense 726 € 1.600  
  Cash 101   € 1.600
         
Apr-30 Accounts Receivable 429 € 108  
  Cash 101 € 108  
  Concession revenue     € 216
  (Received cash & balances on account      
  for concession revenue)      
         
Apr-30 Prepaid Rentals 136 € 1.300  
  cash 101   € 1.300
  (Paid cash for future film rentals)      

(c) Ledger
CAS
H No. 101
Date Explanation Ref. Debit Credit Balance
April 1 Balance √ € 6.000
2 J1 0 € 800 € 5.200
9 J1 € 1.800 0 € 7.000
10 J1 0 € 3.000 € 4.000
12 J1 0 € 300 € 3.700
25 J1 € 5.500 0 € 9.200
29 J1 0 € 1.600 € 7.600
30 J1 € 108 0 € 7.708
30 J1 0 € 1.300 € 6.408

Accounts Receivable No. 112

Date Explanation Ref. Debit Credit Balance
Apr 30 J1 € 108 € 108

Prepaid Rent No. 136

Date Explanation Ref. Debit Credit Balance
Apr 30 J1 € 1.300 € 1.300

Land No. 140

Date Explanation Ref. Debit Credit Balance
Apr 1 Balance √ € 10.000

Equipment No. 157

Date Explanation Ref. Debit Credit Balance
Apr 1 Balance √ € 6.000

Account Payable No. 201

Date Explanation Ref. Debit Credit Balance
Apr 1 Balance √ € 2.000
10 J1 € 1.000 € 3.000
€
20 J1 1.000 € 2.000

Montgage Payable No. 275

Date Explanation Ref. Debit Credit Balance
Apr 1 Balance √ € 8.000
10 J1 € 2.000 € 6.000
Share Capital-Ordinary No. 311
Date Explanation Ref. Debit Credit Balance
Apr 1 Balance √ € 20.000

Services Revenue No. 400

Date Explanation Ref. Debit Credit Balance
€
Apr 9 J1 0 1.800 € 1.800
€
25 J1 0 5.500 € 7.300

Rent Revenue No. 429

Date Explanation Ref. Debit Credit Balance
€
Apr 30 J1 0 216 € 216

Advertising Expense No. 610

Date Explanation Ref. Debit Credit Balance
Apr 12 J1 € 300 0 € 300

Salaries and Weges Expenses No. 726

Date Explanation Ref. Debit Credit Balance
Apr 29 J1 € 1.600 0 € 1.600

Rent Expenses No. 729

Date Explanation Ref. Debit Credit Balance
Apr 2 J1 € 800 0 € 800
20 J1 € 1.000 0 € 1.800

(d) Trial Balance

CLASSIC THEATER
Trial Balance
April 30, 2017
  Debit Credit
Cash € 6.408 0
Accounts Receivable € 108 0
Prepaid Rent € 1.300 0
Land € 10.000 0
Buildings € 8.000 0
Equipment € 6.000 0
Accounts Payable 0 € 2.000
Mortgage Payable 0 € 6.000
Share Capital-Ordinary 0 € 20.000
Service Revenue 0 € 7.300
Rent Revenue 0 € 216
Advertising Expense € 300 0
Salaries and Wages
Expense € 1.600 0
Rent Expense € 1.800   0
  € 35.516 € 35.516