Ex. 177
Glynn Company is a newly organized business. The list of accounts to be opened in the general ledger is as follows:
Accounts PayablePrepaid Insurance
Accounts ReceivablePrepaid Rent
Accumulated DepreciationRent Expense
CashSalary Expense
Depreciation ExpenseSalaries Payable
EquipmentService Revenue
Insurance ExpenseSupplies
Common StockSupplies Expense
Dividends
Instructions
Organize the accounts into the order in which they should appear in the ledger of Glynn Company and assign account numbers. Use the following system to assign account numbers.
1—199Assets
200—299Liabilities
300—399 Stockholders' Equity
400—499Revenues
500—599Expenses
Ex. 178
The transactions of Medina Information 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.
General JournalJ1
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DateAccount Titles and ExplanationRef.DebitCredit
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2011
Sept.1Cash25,000
Common Stock25,000
(Issued stock for cash)
4 Delivery Trucks30,000
Cash10,000
Notes Payable20,000
(Paid cash and issued 2-year, 9%, note for
delivery trucks)
8 Rent Expense1,000
Cash1,000
(Paid September rent)
15 Prepaid Insurance400
Cash400
(Paid one-year liability insurance)
18Cash2,500
Delivery Revenue2,500
(Received cash for delivery services)
20 Salaries Expense500
Cash500
(Paid salaries for current period)
25 Utility Expense100
Accounts Payable100
(Received a bill for September utilities)
30 Dividends1,800
Cash1,800
(Paid dividends)
30 Accounts Receivable2,000
Delivery Revenue2,000
(Billed customer for delivery service)
Ex. 178(cont.)
General Ledger
CashAccount No. 101
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DateExplanationRef.DebitCreditBalance
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Accounts ReceivableAccount No. 112
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DateExplanationRef.DebitCreditBalance
———————————————————————————————————————————
Prepaid InsuranceAccount No. 130
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DateExplanationRef.DebitCreditBalance
———————————————————————————————————————————
Delivery TrucksAccount No. 155
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DateExplanationRef.DebitCreditBalance
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Accounts PayableAccount No. 201
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DateExplanationRef.DebitCreditBalance
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Ex. 178(cont.)
Notes PayableAccount No. 205
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DateExplanationRef.DebitCreditBalance
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Common StockAccount No. 311
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DateExplanationRef.DebitCreditBalance
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DividendsAccount No. 332
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DateExplanationRef.DebitCreditBalance
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Delivery RevenueAccount No. 400
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DateExplanationRef.DebitCreditBalance
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Rent ExpenseAccount No. 719
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DateExplanationRef.DebitCreditBalance
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Ex. 178(cont.)
Salaries ExpenseAccount No. 726
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DateExplanationRef.DebitCreditBalance
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Utility ExpenseAccount No. 735
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DateExplanationRef.DebitCreditBalance
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MEDINA INFORMATION SERVICE
Trial Balance
September 30, 2011
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AccountsDebitCredit
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