MBA 510

Spring 2015
Assignment 2:
Question 1: Transactions for the Hartman Company for the month of November are
presented below. Journalize each transaction and identify each transaction by number. You
may omit journal explanations.
1. Stockholders invested an additional $36,000 cash in the business.
2. Purchased land costing $18,000 for cash.
3. Purchased equipment costing $30,000 for $4,500 cash and the remainder on credit.
4. Purchased supplies on account for $800.
5. Paid $3,000 for a one-year insurance policy.
6. Received $2,000 cash for services performed.
7. Received $5,000 for services previously performed on account.
8. Paid wages to employees for $2,500.
9. Paid dividends to stockholders of $400.
1.
2.
3.

4.
5.
6.
7.
8.
9.

Cash .........................................................................................
Common Stock ................................................................

36,000

Land .........................................................................................
Cash ................................................................................

18,000

Equipment ................................................................................
Cash ................................................................................
Accounts Payable ............................................................

30,000

Supplies ....................................................................................
Accounts Payable ............................................................

800

Prepaid Insurance ....................................................................

Cash ................................................................................

3,000

Cash .........................................................................................
Service Revenue ..............................................................

2,000

Cash .........................................................................................
Accounts Receivable .......................................................

5,000

Salaries and Wages Expense ...................................................

Cash ................................................................................

2,500

Dividends ..................................................................................
Cash ................................................................................

400

36,000
18,000
4,500
25,500
800
3,000
2,000
5,000
2,500
400

Question 2: The transactions of the Speedy Delivery Service are recorded in the general
journal below. You are to post the journal entries to the accounts in the general ledger. After
all entries have been posted, you are to prepare a trial balance on the form provided. A trial
balance is a listing of the final account balances according grouped according to if the
account belongs on the balance sheet or income statement. The format is readily available
in any financial accounting text book or on the web. Please note that this is similar to one of
the questions on the first exam.
General Journal
_____________________________________________________________________________
Date
Account Titles and Explanation
Debit
Credit
_____________________________________________________________________________
2012
Sept. 1
Cash
25,000
Common Stock
25,000
(Stockholders invested cash in business)
4

15

18

Equipment
Cash
Notes Payable
(Paid cash and issued 2-year, 6%, note for
delivery trucks)

50,000
10,000
40,000

Rent Expense
Cash
(Paid September rent)

1,000

Prepaid Insurance
Cash
(Paid one-year liability insurance)

1,400

Cash

2,500

1,000

1,400

Service Revenue
(Received cash for delivery services)
20

25

30

30

2,500

Salaries Expense
Cash
(Paid salaries for current period)

500

Utility Expense
Accounts Payable
(Received a bill for September utilities)

100

Dividends
Cash
(Paid dividends)

750

Accounts Receivable
Service Revenue
(Billed customer for delivery service)

500

100

750
1,000
1,000

Cash

Accounts Receivable

9/1

25,000

9/4

10,000

9/30

1,000

9/18

2,500

9/8

1,000

9/30

Bal. 1,000

9/15

1,400

9/20

500

9/30

750

9/30

Bal 13,850
Prepaid Insurance

9/15

1,400

9/30

Bal. 1,400

Equipment
9/4
9/30

Accounts Payable
100

9/30

Bal. 100

9/4
9/30

Common Stock
9/30

Bal. 50,000

Notes Payable

9/25

9/1

50,000

Dividends
25,000

9/30

750

Bal. 25,000

9/30

Bal. 750

Service Revenue

Rent Expense

9/18

2,500

9/8

9/30

1,000

9/30

9/30

Bal. 3,500

1,000
Bal. 1,000

40,000
Bal. 40,000

Salaries and Wages Expense

Utilities Expense

9/20

500

9/25

100

9/30

Bal. 500

9/30

Bal. 100

SPEEDY DELIVERY SERVICE

Trial Balance
September 30, 2012
Accounts
Cash
Accounts Receivable
Prepaid Insurance
Equipment
Accounts Payable
Notes Payable
Common Stock
Dividends
Service Revenue
Rent Expense
Salaries and Wages Expense
Utilities Expense
Totals

Credit
$ 13,850
1,000
1,400
50,000

Debit

100
40,000
25,000

750
3,500
1,000
500
100
$68,600

$68,600