Example of a Journal Entry:

Date

Debit

Credit

Db

Cr

1 January

Building

$2000

Accounts Payable

$2000

Explanation

Debit Building. Credit Accounts Payable. Building is an asset.

Assets are increased. Accounts Payable is a liability. Liabilities are increased

1. In January, 2020 you (Your name is Huseyin Kokten) have organized a corporation to provide veterinary services. The business is called Dogies!!!. It began its operations immediately. The Transactions during the month of May were as follows

a) Record Dogies transactions in general journal form. (60 points)

Jan. 1 The corporation issued 50,000 shares of stock to Huseyin Kokten in exchange for

$150,000 cash.

Date

Debit

Credit

Db

Cr

Jan. 4 Purchased a minivan for $15,000 and an airconditioner for $4000. Made a

$5000 cash downpayment and issued a note payable for the remaining balance.

Date

Debit

Credit

Db

Cr

Jan. 5 Paid 101 Evler properties $2000 for office space for the month.

Date

Debit

Credit

Db

Cr

Jan. 15 You have billed clients $9500 for services rendered. Of this amount $8000 was received in

cash, and $1500 was billed on account (due in 30 days).

Date

Debit

Credit

Db

Cr

Jan. 16 A $500 invoice was received for facebook advertisements placed in August. The entire

amount will be paid on March 1.

Date

Debit

Credit

Db

Cr

Jan. 17 Medical instruments were purchased on account for $50,000.

Date

Debit

Credit

Db

Cr

Jan. 20 Received a $500 payment on the $1500 account receivable recorded January 15.

Date

Debit

Credit

Db

Cr

Jan. 21 A medical instrument that was purchased on January 17 was returned and the store

reduced Dogies outstanding balance by $4500.

Date

Debit

Credit

Db

Cr

Jan. 22 Paid izenel Garage $200 for maintenance and repair services on the company minivan.

Date

Debit

Credit

Db

Cr

Jan. 31 Paid $3000 in salaries earned by employees during the month.

Date

Debit

Credit

Db

Cr

Jan. 31 Declared a $1500 dividend payable (will be payed later) on May 31.

Date

Debit

Credit

Db

Cr

Jan. 31 Received an $500 bill from Kibris Petrolleri for fuel purcahsed in January. The entire

amount is due by February 15.

Date

Debit

Credit

Db

Cr

The account ttles used by Dogies are:

CashDividends

Accounts ReceivableService Revenue

Accounts PayableMaintenance Expense

Notes PayableFuel Expense

MinivanSalaries Expense

Dividends PayableRent Expense

Capital Stock Service Revenue

Retained Earnings Medical Instruments

b) Post each entry to the appropriate ledger accounts (use the T-account format given below) (15 points)

c) Prepare a trial balance dated January 31, 2020 for Dogies. (15 points)

DOGIES

TRIAL BALANCE

JANUARY 31, 2020

Debit

Credit

Total

d) Prepare a balance sheet dated January 31, 2020. Please fill the table below. Please calculate retained earnings. (8 points)

DOGIES

BALANCE SHEET

At JANUARY 31, 2020

Assets:

Liabilities and Owners Equity:

Owners Equity:

Total

Total

e) Prepare an income statement for Dogies for the month ended January 31, 2020. (7 points)

DOGIES

INCOME STATEMENT

FOR THE MONTH ENDED JANUARY 31, 2020