Mid Term Accounting (Coursework Sample)

MID TERM ACCOUNTING

John’s House Painting Company has the following transactions for the year
1. December 1 – Issued capital stock for $100,000 to start a house painting business.
2. December 1 - Paid one year insurance premium costing $4,800.
3. December 1 - Paid gas expense $200.
4. December 1 - Purchased equipment costing $4,800 on credit.
5. December 12 - Purchased supplies costing $800 on credit.
6. December 18 - Painted three houses totaling $12,000 and billed customers.
7. December 23 - Painted three rooms and billed customers $500.
8. December 28 - Received $2,000 for houses painted in #6.
9. December 31 - Paid for equipment purchased in #4.
10. December 31 - Received $1,000 for a job to paint a house in January next year.
11. December 31 - Paid a $1,000 dividend.
Required:
Prepare journal entries for the above transactions.
Date
Description
$
Debit$
Credit
1st December 
Capital
Cash

100,000.00
100,000.00
1st December
Insurance Premium Paid
Cash

4,800.00
4,800.00
1st December
Paid Gas Expenses
Cash

200.00
200.00
1st December
Purchase of Equipments
Accounts Payable

4,800.00
4,800.00

12th December
Supplies
Accounts Payable

800.00
800.00
18th December
Accounts Receivable
Sales

12,000.00
12,000.00
23rd December
Accounts Receivable
Sales
500.00
500.00

28th December

Cash
Debtors
2,000.00
2,000.00
31st December

Accounts Payable
Cash
4,800.00
4,800.00
31st December

Cash
Prepayment
1,000.00
1,000.00
31st December

Dividends
Cash
1,000.00
1,000.00
Post the above transactions to T Accounts.
Dr Capital Cr

Bal c/d 100,000.00 Cash 100,000.00
Total 100,000.00 Total 100,000.00
Dr Cash Cr

Capital 100,000.00 Insurance Expenses 4,800.00
Account Receivable 2,000.00 Gas Expense 200.00
Prepayment 1,000.00 Accounts Payable 4,800.00
Dividends 1,000.00
Bal c/d 92,200.00
Total 103,000.00 Total 103,000.00
Dr Insurance Expenses Cr

Cash 4,800.00 Bal c/d 4,800.00
Total 4,800.00 Total 4,800.00
Dr Gas Expense Cr

Cash 200.00 Bal c/d 200.00
...