Page 97 - Accounting Principles (A Business Perspective)

2. Recording business transactions

100 Cash 320 Dividends
103 Accounts Receivable 402 Horse Boarding Fees Revenue
130 Land 404 Riding and Lesson Fees Revenue
140 Buildings 507 Salaries Expense
200 Accounts Payable 513 Feed Expense
201 Notes Payable 540 Interest Expense
300 Capital Stock 568 Miscellaneous Expense
310 Retained Earnings
c. Prepare a trial balance.

Solution to demonstration problem
a.
GREEN HILLS RIDING STABLE, INCORPORATED
General Journal
Page1
Date Account Titles and Explanation Post. Debit Credit
Ref.
2010 July 1 Cash (+A) 100 2 5 0 0 0
Capital Stock (+SE) 300 2 5 0 0 0
Additional capital stock issued.

1 Buildings (+A) 140 2 4 0 0 0
Cash (-A) 100 2 4 0 0 0
Paid for building.

8 Account Payable (-L) 200 8 0 0
Cash (-A) 100 8 0 0
Paid accounts payable.

10 Cash (+A) 100 5 4 0 0
Accounts Receivable (-A) 103 5 4 0 0
Collected accounts receivable.

12 Feed Expense (-SE) 513 1 1 0 0
Accounts Payable (+L) 200 1 1 0 0
Purchased feed on account

15 Accounts Receivable (+A) 103 4 5 0 0
Horse Boarding Fee Revenue (+SE) 402 4 5 0 0
Billed boarding fees for July.

24 Miscellaneous Expense (-SE) 568 8 0 0
Cash (-A) 100 8 0 0
Paid miscellaneous expenses for July.

31 Interest Expense (-SE) 540 2 0 0
Cash (-A) 100 2 0 0
Paid interest

31 Salaries Expense (-SE) 507 1 4 0 0
Cash (-A) 100 1 4 0 0
Paid salaries for July.

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