The journal entries for August, Carleys Car Cares second month of business, have been journalized in the
Question:
The journal entries for August, Carley’s Car Care’s second month of business, have been journalized in the general journal in your Working Papers or in CengageNow. The balances of the accounts as of July 31 have been recorded in the general ledger in your Working Papers or in CengageNow. Notice the word Balance in the Item column, the check mark in the Post. Ref. column, and the fact that the amount is in the Balance column only. This indicates a balance brought forward from a prior page or month.
Required
1. Write the owner’s name, M. Carley, in the Capital and Drawing accounts.
2. Post the general journal entries to the general ledger accounts.
3. Prepare a trial balance as of August 31, 20—.
4. Prepare an income statement for the two months ended August 31, 20—.
5. Prepare a statement of owner’s equity for the two months ended August 31, 20—.
6. Prepare a balance sheet as of August 31, 20—.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
1 GENERAL JOURNAL PAGE 5 POST DATE DESCRIPTION REF DEBIT CREDIT 1 20 x 1 2 Aug 1 Rent Expense 512 120000 2 3 Cash 111 120000 3 4 Paid rent for August Ck No 145 4 5 5 6 5 Cash 111 3600 6 7 Accounts Rec...View the full answer
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille
