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    Chapter 2 Accounting - Continuation

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    Katrina
    This document provides two problems with transactions for Lightning Package Delivery Company and Economy Laundry Company. Problem A lists 12 transactions for Lightning Package Delivery Company in March, including issuing stock, paying rent and salaries, purchasing assets, providing and collecting for services. Problem B lists 11 transactions for Economy Laundry Company in August, including issuing stock, borrowing from the bank, purchasing assets, providing and collecting for services, paying expenses and dividends. The problems ask to record the transactions in journal entries and post them to T-accounts.

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    Chapter 2 Accounting - Continuation

    Uploaded by

    Katrina
    402 views2 pages
    This document provides two problems with transactions for Lightning Package Delivery Company and Economy Laundry Company. Problem A lists 12 transactions for Lightning Package Delivery Company in March, including issuing stock, paying rent and salaries, purchasing assets, providing and collecting for services. Problem B lists 11 transactions for Economy Laundry Company in August, including issuing stock, borrowing from the bank, purchasing assets, providing and collecting for services, paying expenses and dividends. The problems ask to record the transactions in journal entries and post them to T-accounts.

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    Chapter 2 Accounting - Continuation

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    This document provides two problems with transactions for Lightning Package Delivery Company and Economy Laundry Company. Problem A lists 12 transactions for Lightning Package Delivery Company in March, including issuing stock, paying rent and salaries, purchasing assets, providing and collecting for services. Problem B lists 11 transactions for Economy Laundry Company in August, including issuing stock, borrowing from the bank, purchasing assets, providing and collecting for services, paying expenses and dividends. The problems ask to record the transactions in journal entries and post them to T-accounts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    402 views2 pages

    Chapter 2 Accounting - Continuation

    Uploaded by

    Katrina
    This document provides two problems with transactions for Lightning Package Delivery Company and Economy Laundry Company. Problem A lists 12 transactions for Lightning Package Delivery Company in March, including issuing stock, paying rent and salaries, purchasing assets, providing and collecting for services. Problem B lists 11 transactions for Economy Laundry Company in August, including issuing stock, borrowing from the bank, purchasing assets, providing and collecting for services, paying expenses and dividends. The problems ask to record the transactions in journal entries and post them to T-accounts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Exercise 

    F Using the data in the previous problem, post the entries to T-accounts. Write the letter of the
    transaction in the account before the dollar amount. Determine a balance for each account.

    Exercise G Using your answer for the previous exercise, prepare a trial balance. Assume the date of the
    trial balance is March 31.

    Problems

    Problem A The transactions of Lightning Package Delivery Company for March follow:

    Mar. 1 The company was organized and issued capital stock for $ 300,000 cash.

    2 Paid $ 6,000 as the rent for March on a completely furnished building.

    5 Paid cash for delivery trucks, $ 180,000.

    6 Paid $ 4,000 as the rent for March on two forklift trucks.

    9 Paid $ 2,200 for supplies received and used in March.

    12 Performed delivery services for customers who promised to pay $ 27,000 at a later date.

    20 Collected cash of $ 4,500 from customers on account (see March 12 entry).

    21 Received a bill for $ 1,200 for advertising in the local newspaper in March.

    27 Paid cash for gas and oil consumed in March, $ 450.

    31 Paid $ 2,400 salaries to employees for March.

    31 Received an order for services at $ 12,000. The services will be performed in April.

    31 Paid cash dividend, $ 1,000.

    Prepare the journal entries required to record these transactions in the general journal of the company.

    Problem B Economy Laundry Company had the following transactions in August:

    Aug. 1 Issued capital stock for cash, $ 150,000.

    3 Borrowed $ 40,000 from the bank on a note.

    4 Purchased cleaning equipment for $ 25,000 cash.

    6 Performed services for customers who promised to pay later, $ 16,000.

    7 Paid this month’s rent on a building, $ 2,800.

    10 Collections were made for the services performed on August 6, $ 3,200.

    14 Supplies were purchased on account for use this month, $ 3,000.

    17 A bill for $ 400 was received for utilities for this month.

    25 Laundry services were performed for customers who paid immediately, $ 22,000.
    31 Paid employee salaries, $ 6,000.

    31 Paid cash dividend, $ 2,000.

    Required:

    Prepare journal entries for these transactions.

    Post the journal entries to T-accounts. Enter the account number in the Posting Reference column of the
    journal as you post each amount. Use the following account numbers:

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