EXERCISES

I. Journalize the transactions

1. Four transactions that occurred during June are listed below.

a. June 1: Issued common stock to several investors for 100,000
b. June 8: Purchased equipment for 16,800 cash
c. June 15: Made cash sales of 23,200 to customers
d. June 29: Paid 4,500 dividend to stockholders

Prepare journal entries to the transactions.

Date Particular of Business transactions Debit Credit

June, 1 Cash 100,000

Common stock 100,000
June, 8 Equipment 16,800
Cash 16,800
June, 15 Cash sales 23,200
Sales Revenues 23,200
June, 29 Cash dividends 4,500
Cash 4,500

2. The following transactions occurred in May. Prepare journal entries for the
transactions.
a. May 5: Borrowed cash of 40,000 from PNB
b. May 10: Made cash sales of 28,500 to customers.
c. May 19: Pai salaries of 15,600 to employees for services performed
d. May 22: Purchased and used 7,100 of supplies in operations of the business.

Date Particular of Business transactions Debit Credit

May, 5 Cash 40,000

Loan from bank 40,000
May, 10 Cash 28,500
Sales revenue 28,500
May, 19 Salaries expense 15,600
Cash 15,600
May, 22 Supplies 7,100
Cash 7,100
II. Preparing Trial Balance

3. Listed below are the ledger accounts for Burger Inc at December 31, 2017. All accounts
are normal balances.

Sales Revenue 23, 150

Cash 12, 850
Accounts Payable 2,825
Common Stock 15,000
Rent Expense 2.400
Dividends 1,500
Salaries Expense 4,300
Equipment 12,725
Accounts Receivable 5,700
Advertising Expense 1,500

Prepare a trial balance for Burger Inc at December 31, 2017.

Burger Inc.
Trial Balance
December 31, 2017

Account Debit Credit

Cash 12,850
Account Receivable 5,700
Equipment 12,725
Account payable 2,825
Common stock 15,000
Dividends 1,500
Service Revenue 23,150
Rent Expense 2,400
Salaries Expense 4,300
Advertising Expense 1,500
40,975 40,975
4. The following trial balance that was prepared by the bookkeeper of Maisee Corp does
not balance.

Maisee Corporation
Trial Balance
December 31, 2016

Debit Credit
Cash 20,000
Accounts Payable 3,000
Insurance Expense 1,500
Supplies 1,200
Accounts Receivable 10,300
Salaries Payable 1,900
Notes Payable 3,100
Common Stock 10,000
Dividends 2,000
Retained Earnings 8,000
Service Revenue 19,200
Unearned Service Revenue 2,100
Prepaid Insurance 1,900
Salaries Expense 9,500
Supplies Expense 900
47,300 47,300