Exercise Week 2

The Cart accounts for McNoodle Company is listed below:

Assets:
Cash Accounts Receivable Office Equipment Automobile

Revenue
Service Revenue

Expenses
Advertising Expense Utilities Expense Salary Expense Telephone Expense

Liabilities
Account Payable

Owner's Equity
McNoodle Capital McNoodle Drawing

During the Month of May McNoodle recorded the following transactions. Record the journal entry then post the transactions in a T account format. Once all transactions have been posted create a Trial Balance May 1st McNoodle invested $50,000 of cash into the business and $10,000 of Office Equipment Account Cash McNoodle Capital Debit 50,000 Credit

50,000

Owner Investment May 3rd Purchased an automobile for 25,000 Account automobile Cash Debit 25,000 Credit

25,000

May 5th

Purchased office equipment for cash $6,000 Account Office Equipment Debit 6,000 Credit

Cash

6,000

May 8th

Purchased Office Equipment on account for $3,000 Account Office Equipment Accounts Payable Debit 3,000 Credit

3,000

May 9th

Paid advertising expense for cash $500 Account Advertising Expense Cash Debit 500 Credit

500

May 11th

Received accounting services on account $4,000 Account Accounts Recievable Service Revenue Debit 4,000 Credit

4,000

May 15th

Collected the cash for the accounting services on May 11th. Account Cash Accountsts Recievable Debit 4,000 Credit

4,000

May 17th

Paid Salary to employees $5,000 Account Salary Expense Cash Debit 5,000 Credit

5,000

May 17th

Paid utility bills totaling $1,000

Account Utility Expense Cash

Debit 1,000

Credit

1,000

May 19th

Purchased Office Equipment on account $7,000 to be paid at a later date. Account Office Equipment Accounts Payable Debit 7,000 Credit

7,000

May 19th

Made a partial payment to the May 19th purchase $4,000. Account Accounts Payable Cash Debit 4,000 Credit

4,000

May 20th

Completed accounting services received $15,000 cash Account Cash Service Revenue Debit 15,000 Credit

15,000

May 21th

Paid telephone bill totaling $2,000 Account Telephone Expense Cash Debit 2,000 Credit

2,000

May 30th

McNoodle took out $4,000 of cash for personal use Account McNoodle Drawing Cash Debit 4,000 Credit

4,000

Post to the T accounts: CASH 50,000 25,000 6,000 500 4,000 5,000 1,000 4,000 15,000 2,000 4,000 Automobile 25,000 Accounts Payable 3,000 7,000 4,000 Accounts Receivable 4,000 4,000

McNoodle Drawing 4,000

Service Revenue 4,000 15,000

Utility Expense 1,000

Salary Expense 5,000

Create the Trial Balance:

Debit Credit 47,500 4,000

Cash Accounts Receivable Office Equipment Automobile Account Payable McNoodle Capital McNoodle Drawing Service Revenue Advertising Expense

69,000 4,000 16,000 25,000 4,000 4,000

10,000 50,000 19,000

500

Utilities Expense Salary Expense Telephone Expense TOTAL

1,000 5,000 2,000

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Office Equipment 6,000 3,000 7,000

McNoodle Capital 50,000

Advertising Expense 500

Teleophone Expense 2,000