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Part 3 General Ledger (LO3-2) Post the information from the journal entries into the general ledger and calculate balances.

customers are charged $87 per hour for services

customers are charged $75 for each unit of retail purchased

Inventory is purchased by the company for $36 per unit

Journal entries:

	Date	Account title and explanation	Debit	Credit
1	Dec.1	Cash	$115,000
		Notes payable		$115,000
		[To record borrowing in exchange of notes]
2	Dec.1	Buildings	$62,000
		Cash		$62,000
		[To record purchase of buildings]
3	Dec.1	Cash	$4,350
		Unearned revenue		$4,350
		[To record sale of gift cards]
4	Dec.1	Cash	$96,000
		Common stock [16,000 x $6]		$96,000
		[To record issuance of common stock]
5	Dec.1	Inventory	$14,400
		Accounts payable [400 x $36]		$14,400
		[To record purchase of inventory on account]
6	Dec.1	Vehicle	$21,000
		Cash		$21,000
		[To record purchase of vehicle]
7	Dec.1	Prepaid insurance	$6,000
		Cash		$6,000
		[To record payment of insurance for one year in advance]
8	Dec.3	Notes receivable	$15,000
		Sales revenue [200 x $75]		$15,000
		[To record sales revenue]
		Cost of goods sold	$7,200
		Inventory [200 x $36]		$7,200
		[To record cost of goods sold]
9	Dec.3	Supplies	$3,200
		Accounts payable		$3,200
		[To record purchase of supplies on account]
10	Dec.6	Unearned revenue	$3,480
		Service revenue [40 hours x $87]		$3,480
		[To record service revenue]
11	Dec.8	Accounts payable	$14,400
		Cash		$13,968
		Inventory [14,400 x 3%]		$432
		[To record payment for accounts payable]
12	Dec.10	Inventory	$8,640
		Cash [240 x $36]		$8,640
		[To record purchase of inventory by cash]
13	Dec.12	Accounts receivable	$7,500
		Sales revenue [100 x $75]		$7,500
		[To record sales revenue]
		Cost of goods sold	$3,600
		Inventory [100 x $36]		$3,600
		[To record cost of goods sold]
14	Dec.20	Cash	$7,350
		Sales discount [7,500 x 2%]	$150
		Accounts receivable		$7,500
		[To record collections from customers]
15	Dec.23	Accounts receivable	$13,500
		Sales revenue [180 x $75]		$13,500
		[To record sales revenue]
		Cost of goods sold	$6,480
		Inventory		$6,480
		[To record cost of goods sold]
16	Dec.31	Notes payable	$1,330
		Interest expense [115,000 x 6% x (1/12)]	$575
		Cash		$1,905
		[To record installment payment on note ]
17	Dec.31	Salaries expense	$4,000
		Cash		$4,000
		[To record payment of salaries expense]
18	Dec.31	Cash dividends	$1,600
		Cash [16,000 x $0.10]		$1,600
		[To record payment of cash dividends]
19	Dec.31	Cash	23000
		Depreciation expense [(21,000-3,000)/5] x 1/12	$300
		Vehicle		$21,000
		Gain on sale of vehicle		$2,300
		[To record sale of vehicle]

Part 2 General Journal (LO3-2) Record the following transactions in the General Journal. Trans. Date Description Borrow $115,000 from the local bank and signed a six-year installment note with payments of $1,905 at the end of each month. The annual interest rate is 6%. Current portion of Note at year end after December payment = 16,500 Dec. 1 Purchased a building for $56,000. Paid $2,000 in attorney fees, $4,000 in remodeling costs to get the building ready for use. The building has a 25- year useful life with residual value of $2,000. Dec. 1 Sold $4,350 worth of gift cards in opening celebration for services to be provided in December. The gift cards expire at the end of the month. Dec. 1 Sell 16,000 shares of no-par value common stock for $6 per share to obtain the funds necessary to start your business. 4 Dec. 1 Dec. 1 Purchase 400 units of inventory on account with terms 3/10 net 30. Purchase a vehicle necessary for business operations for $21,000 cash. The vehicle has a five year life with a residual value of $3,000. 6. Dec. 1 Pay $6,000 for one year of insurance in advance. Dec. 1 Sell 200 units of inventory to a customer who signs a 6-month promissory note at 6% with interest and principal due at maturity. perpetual method = 2 entries Dec. 3 Purchase Supplies on account, $3,200. Dec. 3 Provide 40 hours of services to customers who pay with gift cards (calculate using your hourly service rate) no terms specified. 10 Dec. 6 Company pays invoice for inventory purchased on December 1s' within discount terms. 11 Dec. 8 12 Dec. 10 Purchase an additional 240 units of inventory for cash. Sell 100 units of inventory to a customer on account with a sales discount of 2/10, n/30. (Perpetual method= 2 entries) Dec. 12 13 The customer who purchased product on December 12th pays the amount due (within discount period). Dec. 20 14 Sell 180 units of inventory on account. (Perpetual method = 2 entries) 15 Dec. 23 Record the of $1,905 installment payment on the $115,000 installment note borrowed on December 1s'. The annual interest rate is 6%. 16 Dec. 31 Pay employee salaries, $4,000. 17 Dec. 31 Pay cash dividends to shareholders of $0.10 per share. 18 Dec. 31 Vehicle did not meet expectations sold to another company for $23,000. (Record depreciation at date of sale and then record sale). 19 Dec. 31 3. General Ledger Accounts Payable Interest Payable Cash Interest Receivable Notes Receivable Common Stock Credit Credit Debit Debit Debit Credit Debil Credia Debit Creslit Credit Debit Triai Balance Total Trial Balance Total Trial Balance Tatal Trial Balance Totel Trial Balance Tota! Adjusted Trial Halance Tatal Adjurted Trial Ralance Total Adjusted Trial Bulance Tolal Adjusted Trial Balance Total Adjusted Trial Balance Total Income Taxes Payable Buildings Supplies Triai Ralance Total Debit Credis Debit Credia Debit Crelit Retained Earnings Deferred Revenue Credit Debit Credit Debit Adjusted Trial Balance Total Trial Balance Total Trial Balance Tatal Trial Balance Total Trial Balancr Tota! iai Ralano ta! Accounts Receivable Adjurted Trial Balance Tora! Adjusted Trial Balance Total Debi Credit Adjusted Trial Balance Total Adjusted Trial Balance Total Adjusted Trial Balance Total Vehicles Warranty Liability Prepaid Insurance Trial Balance Total Debit Credit Debi! Credit Debit Creslit Post-Cloring Total Adjusted Trial Balance Tatal Salaries Payable Trial Balance Total Trial Balanos Total Trial Balance Tatal Debit Credir Dividends Allowance for Uucollectible Accounts Adjurted Trial Balance Tora! Adjusted Trial Balance Tota! Adjusted Trial Balance Total Trial Balance Tolal Debit Credi Debit Credit Notes Payable Inventory Accumulated Depreclation Adiusted Trial Balance Totol |Credit Debir Trial Balance Total Debil Credi Debit Crelif Trial Balance Total Adjusied Trial Balance Total Trial Balance Total Trial Balance Total Adjusted Trial Balance Tatal Trial Balance Total Adjurted Trial Balance Tota! Post-Claring Tatal Adjusted Trial Balance Total Adjurted Triai Balance Total Depreciation Expense Supplies Expense Service Revenue Interest Revenue Interest Expense Gain Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Trial Balancg Total Trial Balance Tatal Trial Balance Total Trial Balance Tatal Trial Balance Tatal Trial Halance Tatal Adjusted Tria! Balance Total Adjuvted Trial lalance Tota! Adjusted Trial Ralance Total Adjusted Trial Balance Tatal Adjusted Trial lialance Total Adjurted Trial Balance Tota! Post-Cloxing Total Post-Cloxing Total Part-Claving Tata! Post-Cloning Tatal Part-Claving Tontal Post-Cloxing Total Sales Reveue Bad Debt Expense Rent Expense Debit Warranty Expense Income Tax Expense Loss Credir Debit Credit Dehir Credit Debit Credit Credir Dehir Credit Debit Trial Balance Total Trial Balance Total Trial lalance Tatal Trial Balanos Total Trial Balance Tatal Trial Bulance Total Adjusted Trial Ralance Total Adjusted Trial Balance Tatal Adjusted Trial Balance Tosa! Adjusted Tria! Ralance Total Adjusted Trial Balance Total Adjusted Trial Balance Total Post-Cloxing Total Part-Clasing Tota! Post-Cioxing Tatal Past-Claring Tota! Post-Closing Total Post-Closing Total Salaries Expense Cost of Goods Sold Insurance Expense Sales Discounts Credit Dehir Debit Credir Debit Credit Credtr Debit Trial Balance Tatal Trial Balance T'otal Trial Belance Total Trial Balance Total Adjusted Trial Ralance Total Adjusted Trial Ralance Tatal Adjusted Trial Balance Total Adjusted Trial Balance Tota! Post-Cloring Total Past-Closing Tatal Post-Closing Total Post-Closing Total

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