Judi Dench, Inc. - Journal Entries

Name: Date:
Instructor: Course:
Financial Accounting, 5th Edition, by Weygandt, Kieso, and Kimmel
Solving Financial Accounting Problems Using Microsoft Excel for Windows by Rex A Schildhouse
Problem P2-2A, Judi Dench is a licensed architect. During the first month of the operation of her company, Judi Dench, Inc. the following events and transactions occurred.

Apr 1 Stockholders invested cash in the business in exchange for common stock. $25,000
Apr 1 Hired a secretary-receptionist at a salary of $300 per week payable monthly.
Apr 2 Paid office rent for the month $800
Apr 3 Purchased architectural supplies on account from Halo Company $1,500
Apr 10 Completed blueprints on a carport and billed the client for services $900
Apr 11 Received cash advance from R. Welk for the design of a new home. $500
Apr 20 Received cash for services completed and delivered to P. Donahue. $1,500
Apr 30 Paid secretary-receptionist for the month $1,500
Apr 30 Paid Halo Company for accounts payable due $600

Judi uses the following chart of accounts:
101 Cash 311 Common Stock
112 Accounts Receivable 400 Service Revenue
126 Supplies 726 Salary Expense
201 Accounts Payable 729 Rent Expense
205 Unearned Revenue

Instructions:
(a) Journalize the transactions.

Date Accounts / Text/Memorandum Ref Debit Credit
Date Account Ref Amount
Account Ref Amount
Text / Memorandum

Date Account Ref Amount
Account Ref Amount
Text / Memorandum

Date Account Ref Amount
Account Ref Amount
Text / Memorandum

Date Account Ref Amount
Account Ref Amount
Text / Memorandum

Date Account Ref Amount
Account Ref Amount
Text / Memorandum

Date Account Ref Amount
Account Ref Amount
Text / Memorandum

Date Account Ref Amount
Account Ref Amount
Text / Memorandum

Date Account Ref Amount
Account Ref Amount
Text / Memorandum

Date Account Ref Amount
Account Ref Amount
Text / Memorandum

(b) Post to the ledger accounts. (Use J1 as the journal page number.)

Account: Cash Acct Nbr: 101
Date: Explanation Ref Debit Credit Balance

Account: Accounts Receivable Acct Nbr: 112
Date: Explanation Ref Debit Credit Balance

Account: Supplies Acct Nbr: 126
Date: Explanation Ref Debit Credit Balance

Account: Accounts Payable Acct Nbr: 201
Date: Explanation Ref Debit Credit Balance

Account: Unearned Revenue Acct Nbr: 205
Date: Explanation Ref Debit Credit Balance

Account: Common Stock Acct Nbr: 311
Date: Explanation Ref Debit Credit Balance

Account: Service Revenue Acct Nbr: 400
Date: Explanation Ref Debit Credit Balance

Account: Salary Expense Acct Nbr: 726
Date: Explanation Ref Debit Credit Balance

Account: Rent Expense Acct Nbr: 729
Date: Explanation Ref Debit Credit Balance

(c) Prepare a trial balance on April 30, 2006.

JUDI DENCH, INC.
Trial Balance
April 30, 2006
Debit Credit
Account
Account
Account
Account
Account
Account
Account
Account
Account
Formula Formula