Page 110 - Accounting Principles (A Business Perspective)

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506 Gas and oil expense
507 Salaries expense
515 Rent expense
c. Prepare a trial balance as of 2010 April 30.
Alternate problem C Rapid Pick Up & Delivery, Inc., was organized 2010 January 1. Its chart of accounts is as
follows:
Acct.
No. Account title
100 Cash
103 Accounts receivable
150 Trucks
160 Office furniture
172 Office equipment
200 Accounts payable
201 Notes payable
300 Capital stock
310 Retained earnings
400 Service revenue
506 Gas and oil expense
507 Salaries expense
511 Utilities expense
512 Insurance expense
515 Rent expense
530 Repairs expense
Jan. 1 The company received USD 560,000 cash and USD 240,000 of office furniture in exchange for USD

800,000 of capital stock.
2 Paid garage rent for January, USD 6,000.
4 Purchased computers on account, USD 13,200.
6 Purchased delivery trucks for USD 280,000; payment was made by giving cash of USD 150,000 and a 30-day
note for the remainder.
Jan 12 Purchased insurance for January on the delivery trucks. The cost of the policy, USD 800, was paid in
cash.
15 Received and paid January utilities bills, USD 960.
15 Paid salaries for first half of January, USD 3,600.

17 Cash received for delivery services to date amounted to USD 1,800.
20 Received bill for gasoline purchased and used in January, USD 180.
23 Purchased delivery trucks for cash, USD 108,000.
25 Cash sales of delivery services were USD 2,880.
27 Purchased a copy machine on account, USD 3,600.
31 Paid salaries for last half of January, USD 4,800.
31 Sales of delivery services on account amounted to USD 11,400.

31 Paid for repairs to a delivery truck, USD 1,120.
a. Prepare general ledger accounts for all these accounts except Retained Earnings. The Retained Earnings
account has a beginning balance of zero and maintains this balance throughout the period.
b. Journalize the transactions given for 2010 January in the general journal.
c. Post the journal entries to ledger accounts.
d. Prepare a trial balance as of 2010 January 31.

Accounting Principles: A Business Perspective 111 A Global Text