The company starts operation in Jan 1, 2024
[Link] 1, owner invest $5,000 cash for share capital
[Link] 5, the company use cash to purchase an
equipment for $1,000
[Link] 15, the company borrows $3,000 from the
bank by signing a note payable
Accounting period is Jan, 2024
Journalize the transaction and post to ledger
Journal book
Date Account title Dr Cr
Jan 1 Cash 5,000
Share capital 5,000
Jan 5 Equipment 1,000
Cash 1,000
Jan 15 Cash 3,000
Note payable 3,000
Post to ledger (T-account): determine the
closing balance of each individual account
Cash
Opening balance: 0
5,000 (Jan 1) 1,000 (Jan 5)
3,000 (Jan 15)
Closing balance: 7,000
Equipment
Opening balance: 0
1,000 (Jan 5)
Closing balance: 1,000
Note payable
Opening balance: 0
3,000 (Jan 15)
Closing balance: 3,000
Share capital
Opening balance: 0
5,000 (Jan 1)
Closing balance: 5,000
Trial balance
Jan 31, 2024
Account Debit Credit
Cash 7,000
Equipment 1,000
Note payable 3,000
Share capital 5,000
Total 8,000 8,000
P1.4
June 1
Dr Cash 10,000
Cr Share capital 10,000
June 2
Dr Vehicle 14,000
Cr Cash 2,000
Cr Note payable 12,000
June 3
Dr Rent expense 500
Cr Cash 500
June 5
Dr Account receivable 4,800
Cr Service revenue 4,800
June 9
Dr Dividend 300
Cr Cash 300
June 12
Dr Supplies 150
Cr Account payable 150
June 15
Dr Cash 1250
Cr Account receivable 1250
June 17
Dr Gasoline expense 100
Cr Account payable 100
June 20
Dr Cash 1500
Cr Service revenue 1500
June 23
Dr Note payable 500
Cr Cash 500
June 26
Dr Utilities expense 250
Cr Cash 250
June 29
Dr Account payable 100
Cr Cash 100
June 30
Dr Salaries expense 1,000
Cr Cash 1,000