c. Beginning cash balance (debit) $ ?

Cash received in October (debits) 102,500

Cash disbursed in October (credits) -103,150
Ending cash balance (debit) $18,600

Beginning cash balance (debit) $19,250

b. Beginning accounts receivable (debit) $102,500

Sales on account in October (debits) ?
Collections on account in October (credits) -102,890
Ending accounts receivable (debit) $89,000

Sales on account in October (debits) $89,390

a. Beginning accounts payable (credit) $152,000

Purchases on account in October (credits) 281,000
Payments on accounts in October (debits) ( ?)
Ending accounts payable (credit) $132,500

Payments on accounts in October (debits) ($300,500)

Part 1 General Journal

Date Accounting Titles and Explanation PR Debit Credit

1-Aug Cash 101 6,500
1-Aug Equipment 167 33,500
1-Aug Capital 301 40,000
Owner invested capital
2-Aug Prepaid Insurance 128 2,100
2-Aug Cash 101 2,100
Prepain Insurance policy for 24months
5-Aug Supplies 126 880
5-Aug Cash 101 880
Purchase supplies
20-Aug Cash 101 3,331
20-Aug Main revenue 403 3,331
....
31-Aug Utilities expense 690 675
31-Aug Cash 101 675

Part 2 Post journal entries to ledger accounts

Cash Account No. 101

Date PR Debit Credit Balance
101 1-Aug G1 6,500 6,500
101 2-Aug G1 2,100 4,400
101 5-Aug G1 880 3,520
101 20-Aug G1 3,331 6,851
101 31-Aug G1 675 6,176

Equipment Account No. 167

Date PR Debit Credit Balance
167 1-Aug G1 33,500 33,500
167 G1 33,500
167 G1 33,500
167 G1 33,500
167 31-Aug G1 33,500

Prepaid Insur Account No. 128

Date PR Debit Credit Balance
128 2-Aug G1 2,100 2,100
128 G1 2,100
128 G1 2,100
128 G1 2,100
128 31-Aug G1 2,100

Supplies Account No. 126

Date PR Debit Credit Balance
126 5-Aug G1 880 880
126 G1 - 880
 126 G1 - 880
126 G1 - 880
126 31-Aug G1 - 880

Capital Account No. 301

Date PR Debit Credit Balance
301 1-Aug G1 40,000 40,000
301 G1 40,000
301 G1 40,000
301 G1 40,000
301 31-Aug G1 40,000

Main revenue Account No. 403

Date PR Debit Credit Balance
403 20-Aug G1 3,331 3,331
403 G1 3,331
403 G1 3,331
403 G1 3,331
403 31-Aug G1 3,331

Utilities expen Account No. 690

Date PR Debit Credit Balance
690 31-Aug G1 675 675
690 G1 675
690 G1 675
690 G1 675
690 G1 675
 Part 3 Trial Balance
Company ABC
Trial Balance
31-Aug
Debit Credit
101 Cash $ 6,176
126 Supplies $ 880
128 Prepaid Insurance $ 2,100
167 Equipment $ 33,500
301 Capital $ 40,000
403 Main revenue $ 3,331
690 Utilities expense $ 675

TOTALS $ 43,331 $ 43,331

Part 4
Company ABC
Income Statement
For Month Ended 31-Aug
403 Revenue $ 3,331
Operating expenses
690 Utilities expenses $ (675)
Net Income $ 2,656

Company ABC
Statement of Owner's Equity
For Month Ended 31-Aug
Company ABC, Capital, August 1 $ -
Plus: Investment by Owner $ 40,000
Net income $ 2,656 $ 42,656
$ 42,656
Less: Withdrawals by owner $ -
Company ABC, Capital, August 31 $ 42,656

Company ABC
Balance Sheet
31-Aug
Assets Liabilities
101 Cash $ 6,176
126 Supplies 880 Equity
128 Prepaid Insurance 2,100 Company ABC, Cap $ 42,656
167 Equipment 33,500
Total assets $ 42,656 Total liabilities $ 42,656 $ -
Account No. Account Name
101 Cash
106 Accounts Receivable
126 Supplies
128 Prepaid Insurance
167 Equipment
173 Building
183 Land
201 Account Payable
208 Rent payable
236 Unearned Revenue
245 Note payble
301 Capital
302 Withdrawals
403 Main revenue
406 Other revenues
622 Salaries expenses
637 Insurance expenses
640 Rent expense
652 Supplies expense
655 Advertising expenses
679 Operating expenses
690 Utilities expense
 (3)
(1) (2)
Identify
Difference between Column with
Description of Posting Error Account(s)
Debit and Credit the Larger
Incorrectly
Columns Total
Stated
$3,600 debit to Rent Expense is
a. $2,260 Credit Rent Expense
posted as a $1,340 debit.
$6,500 credit to Cash is posted
b. $6,500 Credit Cash
twice as two credits to Cash.

$10,900 debit to the Withdrawals account is Owner, Capital

c. $0 -
debited to Owner’s Capital. Owner, Withdrawals

$2,050 debit to Prepaid Insurance Prepaid Insurance

d. $0 -
is posted as a debit to Insurance Expense. Insurance Expense

$38,000 debit to Machinery is Machinery

e. $0 -
posted as a debit to Accounts Payable. Accounts Payable

$5,850 credit to Services Revenue

f. $5,265 Debit Services Revenue
is posted as a $585 credit.
$1,390 debit to Store Supplies is
g. $1,390 Credit Store Supplies
not posted
(4)
Amount that
Account(s) Is
Over- or
Understated
Rent Expense
understated $2,260
Cash understated $6,500

Owner, Capital is
understated by $10,900
Owner, Withdrawals is
understated by $10,900

Prepaid Insurance is
understated by $2,050
Insurance Expense is
overstated by $2,050

Machinery is $38,000
Accounts Payable is
understated by $38,000

Services Revenue is
understated by $5,265
Store Supplies is
understated by $1,390
Part 1 General Journal 302
- - -
Date Accounting Titles and Explanation PR Debit Credit
a Cash 101
a Equipment 167
a Capital 301 -
a Owner invested capital
b Cash 101
b Land 183
b Note payble 245 -
b Land purchased
c Cash 101
c Building 173 -
c Portable building purchased 101
d Cash 101
d Prepaid Insurance 128 -
d Prepaid insurance policy for 18 months
e Cash 101
e Main revenue 403 -
f Cash 101
f Equipment 167
f Note payble 245 -
g Accounts Receivable 106
g Main revenue 403 -
h Equipment 167
h Note payble 245 -
i Accounts Receivable 106
i Main revenue 403 -
j Account Payable 201
j Rent expense 640 -
k Cash 101
k Accounts Receivable 106 -
l Cash 101
l Salaries expenses 622 -
m Cash 101
m Note payble 245 -
n Cash 101
n Operating expenses 679 -
o Cash 101
o Withdrawals 302 -
p Cash 101
p Salaries expenses 622 -
q Cash 101
q Advertising expenses 655 -

- -
Part 2 Post journal entries to ledger accounts

Cash Account No. 101

 Date PR Debit Credit Balance
101 a G1 100,000 - 100,000
101 b G1 - 100,000
101 c G1 - 100,000
101 d G1 - 100,000
101 e G1 6,200 - 106,200
101 f G1 - 106,200
101 k G1 7,000 - 113,200
101 l G1 - 113,200
101 m G1 - 113,200
101 n G1 - 113,200
101 o G1 - 113,200
101 p G1 - 113,200
101 q G1 - 113,200
101 30-Jun G1 - - 113,200

Accounts Account No. 106

Date PR Debit Credit Balance
106 g G1 - - -
106 i G1 - - -
106 k G1 - - -
106 G1 -
106 30-Jun G1 - - -

Prepaid In Account No. 128

Date PR Debit Credit Balance
128 d G1 - - -
128 30-Jun G1 - - -
- -
Equipment Account No. 167
Date PR Debit Credit Balance
167 f G1 - - -
167 a G1 - - -
167 h G1 - - -
167 30-Jun G1 - - -

Building Account No. 173

Date PR Debit Credit Balance
173 c G1 - - -
173 G1 - - -
173 30-Jun G1 - - -
Land Account No. 183
Date PR Debit Credit Balance
183 b G1 - - -
183 G1 - - -
183 30-Jun G1 - - -

Account P Account No. 201

Date PR Debit Credit Balance
 201 j G1 - - -
201 m G1 - - -
201 30-Jun G1 - - -

Rent payab Account No. 208

Date PR Debit Credit Balance
208 j G1 - - -
208 G1 - - -
208 30-Jun G1 - - -

Note paybl Account No. 245

Date PR Debit Credit Balance
245 f G1 - - -
245 b G1 - - -
245 30-Jun G1 - - -

Capital Account No. 301

Date PR Debit Credit Balance
301 a G1 - - -
301 G1 - - -
301 30-Jun G1 - - -

Withdrawa Account No. 302

Date PR Debit Credit Balance
302 o G1 - - -
302 G1 - - -
302 30-Jun G1 - - -

Main reve Account No. 403

Date PR Debit Credit Balance
403 g G1 - - -
403 i G1 - - -
403 e G1 - - -
403 30-Jun G1 - - -

Salaries e Account No. 622

Date PR Debit Credit Balance
622 l G1 - - -
622 p G1 - - -
622 30-Jun G1 - - -

Advertisin Account No. 655

Date PR Debit Credit Balance
655 q G1 - - -
655 G1 - - -
655 30-Jun G1 - - -

Operating Account No. 679

Date PR Debit Credit Balance
679 n G1 - - -
 679 G1 - - -
679 30-Jun G1 - - -

Rent expe Account No. 640

Date PR Debit Credit Balance
640 j G1 - - -
640 G1 - - -
640 30-Jun G1 - - -
 Part 3 Trial Balance
Company ABC
Trial Balance
30-Jun
Debit Credit
$ -
101 Cash 113,200
106 Accounts Receivable -
128 Prepaid Insurance 3,000
167 Equipment -
173 Building -
183 Land -
201 Account Payable -
208 Rent payable -
245 Note payble -
301 Capital -
302 Withdrawals -
403 Main revenue -
622 Salaries expenses -
640 Rent expense -
655 Advertising expenses -
679 Operating expenses -
TOTALS $ 116,200 $ - $ 116,200

Company ABC
Income Statement
For Month Ended 30-Jun
Revenue $ - $ -
Operating expenses
Salaries expenses $ -
Rent expense $ -
Advertising expenses $ -
Operating expenses $ - $ -
Net Income $ -

Company ABC
Statement of Owner's Equity
For Month Ended 30-Jun
Company ABC, Capital, August 1 $ -
Plus: Investment by Owner $ -
Net income $ - $ -
$ -
Less: Withdrawals by owner - $ -
Company ABC, Capital, August 31 $ -

Company ABC
Balance Sheet
 30-Jun
Assets Liabilities
101 Cash $ 113,200 Account Payable $ -
106 Accounts Receivable $ - Rent payable $ -
128 Prepaid Insurance $ 3,000 Note payble $ -
167 Equipment $ - Total Lib. $ -
173 Building $ - Equity
183 Land $ - Company ABC, Cap $ -
Total assets $ 116,200 Total liabilities an $ -
Income Statement
FOR Month ending 30 June
Revenue -
Expenses
Salaries expenses -
Rent expense -
Advertising expen -
Operating expens -
Total Expense -
Net Income -

Statement of Owners' Equity

FOR Month ending 30 June
Opening balance 0
Capital -
Withdrawal -
-
Net income -
Ending balance -

Balance Sheet
At Month End 30 June

TOTAL ASSETS Total liabilities -

Cash 113,200 Account Payable -
Accounts Receiva - Rent payable -
Prepaid Insurance 3,000 Note payble -
Equipment -
Building - Equity -
Land -
TOTAL ASSETS 116,200 Total liabilities - (116,200)
$ 116,200