General Ledger Layout

Chapter 04 - Preparing the General Journal and General Ledger

Problem 4-2A (90 minutes) Part 1

Mar. 1 Cash.............................................................101 150,000 Office Equipment........................................163 22,000 K. Reese, Capital ................................301

Owner invested cash and equipment.

172,000

2

Prepaid Rent ...............................................131 Cash .....................................................101

Prepaid six months’ rent.

6,000 6,000 3,000 1,200 4,200 4,000 4,000 7,500 7,500 4,200 4,200 5,000 5,000 3,500 3,500 3,820 3,820 5,100 5,100 600 600 500 500

3

Office Equipment........................................163 Office Supplies ...........................................124 Accounts Payable ...............................201

Purchased equipment and supplies on credit.

6

Cash.............................................................101 Services Revenue ...............................403

Received cash for services.

9

Accounts Receivable .................................106 Services Revenue ...............................403

Billed client for completed work.

12

Accounts Payable ......................................201 Cash .....................................................101

Paid balance due on account.

19

Prepaid Insurance ......................................128 Cash .....................................................101

Paid premium for insurance.

22

Cash.............................................................101 Accounts Receivable .........................106

Collected part of amount owed by client.

25

Accounts Receivable .................................106 Services Revenue ...............................403

Billed client for completed work.

29

K. Reese, Withdrawals ...............................302 Cash .....................................................101

Owner withdrew cash for personal use.

30...