how do I post these transactions in a general journal

Financial Accounting I Comprehensive Problem

PART 1

Journalizing Entries, Posting to the Ledger, and Preparing the Unadjusted Trial Balance

You are an employee at a full service bookkeeping and auditing firm called Accounting Solutions. You have just started doing general bookkeeping services for clients when your manager introduces you to your new client, Jessi Jones.

Jessi is graduating this quarter with a degree in digital design. She requests help setting up and keeping the books for her new company, Jessis Creative Design. Jessi will hire a CPA to file all tax forms and apply with the IRS for a tax ID number. You will keep the books and send them to the CPA and Jessi monthly.

Jessi has already created a chart of accounts, numbering her account categories as follows:

Assets 100

Liabilities 200

Stockholders equity 300

revenue 400

expense 500.

Review the chart of accounts tab in the template and familiarize yourself with the accounts to be used in this problem.

Next, Jessi numbered the accounts within the categories, being sure to leave numbers open for possible future needs to add accounts. You will not need to add new accounts for this problem.

After Jessis Creative Designs first month of operations Jessi delivers to you a stack of invoices, check stubs, receipts and her first VISA-Business bill. You must decipher these in order to enter them into the accounts. After sorting through the source documents, you have made a list of transactions for the first month, April. Required for Part 1 of the Comprehensive Problem, you will complete the following tasks:

1. Journalize the April transactions in a journal.

2. Post the journal entries to the T-accounts.

3. Create an Unadjusted Trial Balance

List of April Transactions

April 1. Jessi invested $15,000 in the company, resulting in her receipt of Common Stock.

April 2. Jessi purchased from Best Buy a computer and printer/ fax/ copier and monitor and software for $4000 on account. She procured a 12-month, no interest credit arrangement and will make monthly payments to Best Buy. You decide this will all be categorized as equipment, since its going to be used for a number of periods in the business.

April 3. Jessi set up a credit account with an office supply store for supplies, and purchased supplies including printer paper, CDs, and ink for the printer for $200 on account. Jessi gave you the bill but she does not have to make a payment until the end of the month.

April 4. Jessi purchased a comfortable desk chair from a department store for $325, paying cash. You decide this will be classified as equipment.

April 7. Jessi decided to develop a logo and other advertising materials for her car and customers. She had them printed and had her car painted with the new logo. Jessi paid $300 cash for the advertising. You decide this will be expensed in the current month. (Hint: Since this is advertising that will all be expensed in the current month, what is the correct account to use?)

April 8. Jessi negotiated a business transaction with a local restaurant who is just opening. She has contracted with them to work on a logo, menu, and flyers for the restaurant. The restaurant owner made a $200 cash down payment to Jessi to be used against the first months bill. Jessi will bill the customer monthly based on her hours worked on the account. (Hint: Jessi hasnt done any work yet, she has only agreed to do work in the future for the restaurant. This means she has an obligation to either do the work, or give the money back.)

April 9. Jessi designed a flyer for a local bakery and was paid cash of $150 for her work.

April 12. Jessi designed a CD cover for a friend who is a drummer in a local band. She was paid $800 cash for her work.

April 14. Jessi designed some Point Of Sale material for a local coop market. She sent them an invoice for $600 for her work due on the last day of the month.

April 22. Jessi set up a subscription account to purchase stock photos for artwork to be used in her design work for $300. This is a prepaid asset until Jessi uses the photos. (Hint: This transaction will use the two following accounts: Cash and Prepaid Photo Subscriptions. You decide how they will be affected.)

April 23. Jessi designed and set up a website, email account, etc. for herself. She paid $480 to register everything and will expense $40 per month against this amount. (Hint: Jessi is paying for advertising for a full year today, but will only use up $40 of that amount each month-the $40 figure is related to one of the adjusting entries in Part 2, and will not be used in this transaction. Its extra information right now.)

April 24. Jessi wrote a check to herself to cover personal living expenses in the amount of $1,200. (Remember, when the stockholders receive money from the business, it is called a dividend. Jessi doesnt get to call her personal costs business expenses- that would be a violation of the business entity concept.)

April 30. Jessi made her first monthly payment on the computer to Best Buy in the amount of $352. (Hint: This is one of the previous charges she made, which she is now paying on account.)

April 30. Jessi made a payment for supplies to the supply store of $75. (Hint: This is one of the previous charges she made, and she is now making a payment on account.)

April 30. Jessi received a check from the local coop market for $250 in partial payment of the invoice sent to them on April 14th.

April 30. Jessi worked on a business card and logo for a local quilting shop. She did not finish the work and there will be more work completed for this company in the next month so she billed them for 15 hours of work completed now at $85 per hour. (This is a new client who has not paid her in advance. Treat this as a new billing to a customer for services performed.)

2. Post the transactions to the T accounts.

3. Prepare an unadjusted trial balance.

PART 2

Month End Adjusting Entries, Financial Statements and the Closing Process

Jessi is anxious to find out if she has earned any profit the first month of her operations. You have to adjust the accounts to bring them up to date before you can prepare the financial statements. For Part 2 of the Comprehensive Problem, you will complete the following tasks:

1. Journalize the adjusting entries.

April 30. The depreciation on the equipment is $110.

April 30. The supplies remaining on hand at the end of the month total $140.

April 30. The balance in the photo subscriptions web site is $245. (Hint: Of the $300 that she had in the PPD Subscriptions account, how much has now been used up? The expense account to use here is called Photo Expenses.)

April 30. The monthly amount for advertising via the web site and email account must be expensed. (Hint: Refer to the original entry above for the amount per month to be expensed- remember, she originally paid $480 for one year worth of these services, now she has used up one month worth. What is the entry that adjusts the books for this?)

April 30. Jessi determined she performed $1,200 worth of work for the restaurant. She has already received some of the cash on the 8^th of the month. Now she needs to invoice the restaurant for the remainder and record the revenue earned. (Hint: Refer to the entry for clues about what she needs to do in the entry for the restaurant- they have already paid her some of this. This entry will affect THREE accounts.)

2. Post the adjusting entries to the T accounts.

3. Prepare an adjusted trial balance.

4. Create the financial statements in proper form.

a. Prepare the income statement using the single-step method.

b. Prepare the statement of retained earnings.

c. Prepare the balance sheet in account form.

5. Journalize the closing entries.

6. Post the closing entries to the T accounts.

7. Prepare a post closing trial balance.