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Accounting: Preparing the general ledger.

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Journal Entries for each transaction
During July 2009, Krogue, Inc., completed the following transactions.
entry for each transaction.
July 2 Received $320,000 for 80,000 shares of capital stock.
4 Purchased $90,000 of equipment, with 75% down and 25% on a
note payable.
13 Purchased $250,000 of inventory, paying 40% down and 60% on credit.
20 Collected $7,500 from accounts receivable.
27 Paid property taxes of $1,200.
30 Paid $150,000 of accounts payable for inventory purchased on July 13

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Solution Summary

The problem deals with journalizing transactions.

See Also This Related BrainMass Solution

Prepare entries, general ledger, trial balance, adjustments

During its first month of operation, the Parkview Landscaping Corporation, which specializes in residential landscaping,
completed the following transactions:

July 1 Began business by making a deposit in a company bank account of $24,000, in exchange
for 4,800 shares of $5 par value common stock.

July 1 Paid the premium on a one-year insurance policy, $2,400.

July 1 Paid the current month's rent, $2,080.

July 3 Purchased landscaping equipment from Brookwood Company, $8,800. Paid $1,200 down and the balance was
placed on account. Payments will be $400.00 per month for nineteen months. The first payment is due 8/1.
Note: Use Accounts Payable for the Balance Due.

July 8 Purchased landscaping supplies from Lakeside Company on credit, $780.

July 12 Paid utility bill for July, $308.

July 16 Received cash for landscaping revenue for the first half of July, $2,724.

July 19 Made payment on account to Lakeside Company, $400.

July 31 Received cash for landscaping revenue for the last half of July, $2,620.

July 31 Declared and paid cash dividend of $1,600.

Prepare journal entries to record the July transactions in the General Journal below. Use the following account names for journal entries.

General Journal Chart of Accounts: Account Title (Normal Balance)
Date Description(Account Name) Debit Credit
Cash (Debit)
Prepaid Insurance (Debit)
Landscaping Supplies (Debit)
Landscaping Equipment (Debit)
Accum Depr -Equipment (Credit)

Accounts Payable (Credit)
Income Tax Payable (Credit)

Stockholders Equity
Common Stock (Credit)
Retained Earnings (Credit)
Dividends (Debit)

Landscaping Revenue (Credit)

Rent Expense (Debit)
Utility Expense (Debit)
Insurance Expense (Debit)
Supplies Expense (Debit)
Depreciation Expense (Debit)
Income Tax Expense (Debit)

0 0

Note: Remember that Debits must equal Credits - All of your Journal Entries should balance.

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