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Financial Accounting BMBA $140$ Assignment #$2$

Name $($first and last name$)$: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

PART I $$ JOURNAL ENTRIES $(18$ points$)$

The following ledger accounts are used by Grant Girls Cookie Company in their ledger

$.$

Instructions: Record the appropriate entries for the month of October using the chart of accounts and following transactions.

$1000$ Cash $2000$ Salaries Payable $4000$ Cookie Revenue

$1010$ Accounts Receivable $2010$ Accounts Payable $5000$ Equipment Expense

$1020$ Supplies $2020$ Unearned Cookie Revenue $5010$ Advertising Expense

$1030$ Prepaid Salaries $2030$ Notes Payable $5020$ Supplies Expense

$1040$ Prepaid Advertising $3000$ G$.$ Grant, Capital $5030$ Rent Expense

$1050$ Equipment $3010$ G$.$ Grant, Drawings $5040$ Salaries Expense

Transactions:

$0.$ October $1,$ G$.$ Grant invested $$6,000$ in cash and $$6,000$ in supplies into the business.

$1.$ October $1,$ Rent for the month of October was paid in cash, totalling $$1,500$

$2.$ Cookies worth $$250$ were sold to a customer on account on October $2.$

$3.$ Future advertisements for November were purchased for $$1,000$ cash on October $3.$

$4.$ October $10,$ G$.$ Grant purchased more equipment totalling $$4,500$ but cash was needed for operational expenses, signed a note payable to ensure required equipment was received.

$5.$ October $15,$ one of G$.$ Grant$$s siblings worked for the weekend at the local farmers market, G$.$ Grant agreed to pay $$100$ a day for the weekend in cash.

$6.$ Additional ingredients were purchased on account from a local food distributer totalling $$799,$ payment terms were net $30$ from purchase date of October $17.$

$7.$ G$.$ Grant was late in totaling receipts, additional sales up until October $20$ totalled $$3,500$ half was received in cash and half is still receivable.

$8.$ A customer purchased $$300$ worth cookies for the first weekend in November on October $21,$ payment was received in full on the day of the order.

$9.$ On October $31,$ G$.$ Grant withdrew $$1,000$ in cash.

Entry # Date Account Number Account Name Debit or Credit Amount

$0$ Oct. $11000$ Cash DR $6,000$

$1020$ Supplies DR $6,000$

$3000$ G$.$ Grant, Capital CR $12,000$

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$9$

PART II $$ Trial Balance $(21$ points$)$

Answers to Part II:

Instructions: Prepare a Trial balance using the chart of accounts provided above and the journal entries prepared. Please use the following template for your final answer.

Note: for accounts with multiple entries please include a T Account to show your work, T Account templates are included below. Part marks may be awarded if support is available.

T Accounts:

Cash

DR CR

Total:

Supplies

DR CR

Total:

Accounts Receivable

DR CR

Total:

G$.$ Grant Capital

DR CR

Total:

Trial Balance:

Account Number Account Name Debit Balance Credit Balance

Total Balance