NetSolutions Trial Balance December 31, 2005 Cash Accounts Receivable Supplies Prepaid Insurance Land Office Equipment Accounts Payable Unearned Rent Chris Clark, Capital Chris Clark, Drawing Fees Earned Wages Expense Rent Expense Utilities Expense Supplies Expense Miscellaneous Expense 2 2 2 2 20 1 065 220 000 400 000 800 00 00 00 00 00 00 900 00 360 00 25 000 00 4 000 00 16 340 00 4 275 00 1 600 00 985 00 800 00 455 00 42 600 00 42 600 00
Date
2005
Item
Nov. 30 Dec. 1
2 2
2 000 00
5 900 00
2 400 00
3 500 00
Dec. 1 NetSolutions paid rent for December, $800.
14 15 16 17
1 Rent Expense Cash Paid rent for December.
Page 2
Post. Ref. Debit Credit
Description
1 Dec. 1 Prepaid Insurance
2 3 4 Cash Paid premium on two-year policy.
15
2 400 00
2 400 00
ACCOUNT Cash Post. Ref.
27 28 29 30
27 Wages Expense Cash Paid two weeks’ wages.
51 11
1 200 00 1 200 00
Dec. 31 NetSolutions paid its $310 telephone bill for the month.
31 32 33 34
Lesson 6
Journals
Key Terms
• • • • • • • • Special journal General journal In contrast to Sales journal Sales on credit Purchases journal Cash receipts journal Cash payments/disbursements journal
31 Utilities Expense Cash Paid telephone bill.
54 11
310 00 310 00
Dec. 31 NetSolutions paid its $225 electric bill for the month.
Page 4
Post. Ref. Debit Credit
9 10 11 12
16 Accounts Receivable Fees Earned Received fees from customers.
12 41
1 750 00 1 750 00
Dec. 20 NetSolutions paid $900 to Executive Supply Co. on the $1,800 debt owed from the December 4 transaction.
JOURNAL
Date
2005
Description
1 Dec. 31 Utilities Expense
54
225 00
2
3 4
Cash
Paid utility bill.
11
225 00
Dec. 31 NetSolutions received $2,870 from fees earned for the second half of December.
4 Office Equipment Accounts Payable Purchased office equipment on
18 21
1 800 00 1 800 00
account.
Dec. 6 NetSolutions paid $180 for a newspaper advertisement.
2 3 4 Cash Paid premium on two-year policy.
2 400 00
2 400 00
ACCOUNT Prepaid Insurance Post. Ref.
ACCOUNT NO. 15
Balance Debit Credit Debit Credit
Date
2005
Description
1 Dec. 1 Prepaid Insurance
2 3 4 Cash Paid premium on two-year policy.
15
11
2 400 00
2 400 00
ACCOUNT Cash Post. Ref.
ACCOUNT NO. 11
Balance Debit Credit Debit Credit
15
2 400 00
2 400 00
ACCOUNT Prepaid Insurance Post. Ref.
ACCOUNT NO. 15
Balance Debit Credit Debit Credit
Date
2005
Item
Dec. 1
2
2 400 00
2 400 00
JOURNAL
Date
2005
13 15 16
20 Accounts Payable Cash Paid part of amount owed to
21 11
900 00 900 00
Executive Supply Co.
Dec. 21 NetSolutions received $650 from customers in payment of their accounts.
Dec. 1 NetSolutions paid a premium of $2,400 for a comprehensive insurance policy covering two years.
JOURNAL
Date
2005
Page 2
Post. Ref. Debit Credit
Description
52 11
800 00 800 00
Dec. 1 NetSolutions receives $360 for three month’s rent beginning December 1.
14 15 16 17
1 Cash Unearned Rent Received advanced payment
18 19 20 21
21 Cash Accounts Receivable Received cash from customer
11 12
650 00 650 00
on account.
Dec. 23 NetSolutions paid $1,450 for supplies.
22 23 24 25
1 Dec. 31 Prepaid Insurance
2 400 00
2
3 4
Cash
Paid premium on two-year policy.
2 400 00
JOURNAL
Date
2005
Page 2
Post. Ref. Debit Credit
Description
1 Dec. 1 Prepaid Insurance
21 11
400 00 400 00
Dec. 13 NetSolutions paid a receptionist and part-time assistant $950 for two weeks’ wages.
JOURNAL
Date
2005
Page 3
Post. Ref. Debit Credit
14 23
360 00 360 00
For three months’ rent of land.
Dec. 4 NetSolutions purchased office equipment on account from Executive Supply Co. for $1,800.
18 19 20 21
Description
1 Dec. 13 Wages Expense
51
950 00
2
3 4
Cash
Paid two week’s wages.
11
950 00
Dec. 16 NetSolutions received $3,100 from fees earned for the first half of December.
23 Supplies Cash Purchased supplies.
14 11
1 450 00 1 450 00
Dec. 27 NetSolutions paid the receptionist and part-time assistant $1,200 for two weeks’ wages.
14 15 16 17
31 Chris Clark, Drawing Cash Chris Clark withdrew cash