1. Unit 2 – Solution to PR2-3A

2. Journalize Entries Entry 1: Kathleen transferred cash from a personal bank account to an account to be used for the business, $17,000. Journal Entry Cash 17,000 Kathleen Alvarez, Capital 17,000

3. Journalize Entries, cont. Entry 2: Paid rent for period of April 2 to end of month, $3,400. Journal Entry Rent Expense 3,400 Cash 3,400

4. Journalize Entries, cont. Entry 3: Purchased office equipment on account, $10,000. Journal Entry Equipment 10,000 Accounts Payable 10,000

5. Journalize Entries, cont. Entry 4: Purchased a used truck for $21,000, paying $2,000 cash and giving a note payable for the remainder. Journal Entry Truck 21,000 Cash 2,000 Note Payable 19,000

6. Journalize Entries, cont. Entry 5: Purchased supplies for cash, $1,800 Journal Entry Supplies 1,800 Cash 1,800

7. Journalize Entries, cont. Entry 6: Received cash for jobs completed, $13,000. Journal Entry Cash 13,000 Fees Earned 13,000

8. Journalize Entries, cont. Entry 7: Paid annual premiums on property and casualty insurance, $1,800. Journal Entry Prepaid Insurance 1,800 Cash 1,800

9. Journalize Entries, cont. Entry 8: Recorded jobs completed on account and sent invoices to customers, $9,000. Journal Entry Accounts Receivable 9,000 Fees Earned 9,000

10. Journalize Entries, cont. Entry 9: Received an invoice for truck expenses, to be paid in April, $1,000. Journal Entry Truck Expense 1,000 Accounts Payable 1,000

11. Other Comments Continue with remainder of entries Post each transaction to the general ledger under each account Prepare an unadjusted trial balance – a listing of all general ledger accounts with their current total balance Trial Balance accounts are listed/grouped by Account Type in the following order: Assets, Liabilities, Owners Equity, Revenues, Expenses Contact me – etruban@lfcc.edu with questions