Solution to Demonstration Problem Chapter 2

(a) & (c)

Cash







No. 101

Date

Explanation

Ref.

Debit

Credit

Balance

July 1
5
15
20
21
29
30

Balance


J1
J1
J1
J1
J1
J1


0,850


250



1,400
2,000
0,
600
900

8,750
9,600
8,200
6,200
6,450
5,850
4,950





Accounts Receivable







No. 112

Date

Explanation

Ref.

Debit

Credit

Balance

July 1
5
10

Balance


J1
J1



6,300


0,850

2,320
1,470
7,770





Supplies







No. 126

Date

Explanation

Ref.

Debit

Credit

Balance

July 1
26

Balance


J1


350




1,900
2,250





Equipment







No. 157

Date

Explanation

Ref.

Debit

Credit

Balance

July 1

Balance







9,000






Accounts Payable







No. 201

Date

Explanation

Ref.

Debit

Credit

Balance

July 1
20
26

Balance


J1
J1


2,000



350

5,500
3,500
3,850





Unearned Revenue







No. 206

Date

Explanation

Ref.

Debit

Credit

Balance

July 1
17

Balance


J1


0,600



0 0800
00,200





Irene Boris, Capital







No. 301

Date

Explanation

Ref.

Debit

Credit

Balance

July 1

Balance







15,670





Irene Boris, Drawings







No. 306

Date

Explanation

Ref.

Debit

Credit

Balance

July 29



J1

0,600



00,600





Laundry Revenue







No. 426

Date

Explanation

Ref.

Debit

Credit

Balance

July 10
16
21



J1
J1
J1



6,300
0,600
250

06,300
06,900
7,150





Salaries Expense







No. 726

Date

Explanation

Ref.

Debit

Credit

Balance

July 15



J1

1,400



01,400






Utilities Expense







No. 732

Date

Explanation

Ref.

Debit

Credit

Balance

July 31



J1

0,900



00,900



(b)








J1

Date

Account Titles and Explanation

Ref.

Debit

Credit

July 5


Cash
Accounts Receivable
(Received collections from
customers on account)



101
112

0
,850


0
,850
10 Accounts Receivable
Laundry Revenue
(Billed customers for services
performed)

112
426
6,300
6,300
15 Salaries Expense
Cash
(Paid employee salaries)

726
101
1,400
1,400
16 Unearned Revenue
Laundry Revenue
(Performed services for
customers who paid in
advance)

206
426
0,600
0,600
20



21
Accounts Payable
Cash
(Paid creditors on account)

Cash
Laundry Revenue
201
101


101
426
2,000



250

2,000



250
(Performed services for cash)











J1

Date

Account Titles and Explanation

Ref.

Debit

Credit

July 26

Supplies
Accounts payable
(Purchased supplies on account)


126
201
0,
350

0,
350
29 Irene Boris, Drawings
Cash
(Withdrew cash for personal use)

306
101
0,600
0,600
30 Utilities Expense
Cash
(Paid utilities)

732
101
0,900
0,900



(d) IRENES COIN LAUNDRY
Trial Balance
July 31, 2002






Debit



Credit

Cash......................................................................................
Accounts Receivable ..........................................................
Supplies ...............................................................................
Equipment ............................................................................
Accounts Payable................................................................
Unearned Revenue..............................................................
Irene Boris, Capital ..............................................................
Irene Boris, Drawings .........................................................
Laundry Revenue ................................................................
Salaries Expense.................................................................
Utilities Expense..................................................................



$04,950
007,770
002,250
009,000



000,600

001,400
900
$26,870







$03,850
000,200
015,670

007,150


$26,870