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Ledger of Georgian Enterprises

(See attached file for full problem description)

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Journalizing, Posting, and Preparing a Trial Balance
Georgian Enterprises uses the following general ledger accounts in its accounting system.
Listed for each account is its account number and balance as of January 1, 2003.

Account#
Cash 101 $ 60,000
Supplies 121 10,000
Office Equipment 151 170,000
Accumulated
Depreciation-OE 152 45,000
Accounts Payable 201 70,000
Common Stock 301 90,000
Retained Earnings 350 35,000
Fee Revenue 401 0
Selling Expenses 501 0
Salary Expense 511 0
Supplies Expense 531 0

In early January 2003, Georgian Enterprises engaged in the following transactions:
January 2 Paid $30,000 on accounts payable
January 3 Purchased $1,100 of supplies for cash
January 4 Purchased office equipment for $2,700 cash
January 6 Earned and received fees (revenues) from customers of $16,400
January 7 Paid selling expenses of $7,100
January 7 Paid employee salaries of $5,200

Required:
(1) Why do some of Georgian's accounts have zero balances at the beginning
of January?
(2) Prepare a journal entry for each of the transactions listed.
(3) Prepare four-column general ledger accounts for Georgian Enterprises as of
January 1, 2003. Post the January 2003 journal entries to these accounts.
(4) Prepare a trial balance for Georgian Enterprises as of January 7, 2003.
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Because these are Temporary (Nominal) accounts. Such accounts are ...

Solution Summary

The solution is in an excel sheet that addresses the following requirements:
(1) Why do some of Georgian's accounts have zero balances at the beginning
of January?
(2) Prepare a journal entry for each of the transactions listed.
(3) Prepare four-column general ledger accounts for Georgian Enterprises as of
January 1, 2003. Post the January 2003 journal entries to these accounts.
(4) Prepare a trial balance for Georgian Enterprises as of January 7, 2003.

$2.19