application problem 3 - 4.2 (static)\n1. journalize the transactions\n2. totals and prod reports\nusing the…

application problem 3 - 4.2 (static)\n1. journalize the transactions\n2. totals and prod reports\nusing the information provided for mundt. remember to record appropriate source\naug. 1 mikaela mundt invested $2,000.00 of her own money in the business. receipt no. 1.\n3 used business cash to purchase supplies costing $216.00. wrote check no. 1.\n4 wrote check no. 2 for insurance, $245.00.\n5 purchased supplies for $68.00 over the phone from southern supplies, promising to send the check next week. memo no. 1.\n11 sent check no. 3 to southern supplies, $68.00.\n12 sent a check for the electricity bill, $180.00. check no. 4.\n15 wrote $800.00 check to ms. mundt as a withdrawal of equity for personal use. used check no. 5.\n16 sold services for $412.00 to j. lepowsky, who agreed to pay for them within ten days. sales invoice no. 1.\n17 recorded cash sales of $1,179.00. calculator tape dated march 17. t17.\n18 paid $132.00 for advertising. wrote check no. 6.\ndate account title doc. no. post. ref. general debit credit sales credit cash debit credit

application problem 3 - 4.2 (static)\n1. journalize the transactions\n2. totals and prod reports\nusing the information provided for mundt. remember to record appropriate source\naug. 1 mikaela mundt invested $2,000.00 of her own money in the business. receipt no. 1.\n3 used business cash to purchase supplies costing $216.00. wrote check no. 1.\n4 wrote check no. 2 for insurance, $245.00.\n5 purchased supplies for $68.00 over the phone from southern supplies, promising to send the check next week. memo no. 1.\n11 sent check no. 3 to southern supplies, $68.00.\n12 sent a check for the electricity bill, $180.00. check no. 4.\n15 wrote $800.00 check to ms. mundt as a withdrawal of equity for personal use. used check no. 5.\n16 sold services for $412.00 to j. lepowsky, who agreed to pay for them within ten days. sales invoice no. 1.\n17 recorded cash sales of $1,179.00. calculator tape dated march 17. t17.\n18 paid $132.00 for advertising. wrote check no. 6.\ndate account title doc. no. post. ref. general debit credit sales credit cash debit credit

Answer

Explanation:

Step1: Record investment

Debit Cash $2000, Credit Owner's Equity $2000.

DATE ACCOUNT TITLE DOC. NO. POST. REF. GENERAL DEBIT GENERAL CREDIT SALES CREDIT CASH DEBIT CASH CREDIT
Aug 1 Cash Receipt No. 1 2000 2000
Aug 1 Owner's Equity - Mikaela Mundt 2000

Step2: Record supplies purchase with cash

Debit Supplies $216, Credit Cash $216.

DATE ACCOUNT TITLE DOC. NO. POST. REF. GENERAL DEBIT GENERAL CREDIT SALES CREDIT CASH DEBIT CASH CREDIT
Aug 3 Supplies Check No. 1 216 216
Aug 3 Cash 216

Step3: Record insurance payment

Debit Pre - paid Insurance $245, Credit Cash $245.

DATE ACCOUNT TITLE DOC. NO. POST. REF. GENERAL DEBIT GENERAL CREDIT SALES CREDIT CASH DEBIT CASH CREDIT
Aug 4 Pre - paid Insurance Check No. 2 245 245
Aug 4 Cash 245

Step4: Record supplies purchase on account

Debit Supplies $68, Credit Accounts Payable - Southern Supplies $68.

DATE ACCOUNT TITLE DOC. NO. POST. REF. GENERAL DEBIT GENERAL CREDIT SALES CREDIT CASH DEBIT CASH CREDIT
Aug 5 Supplies Memo No. 1 68
Aug 5 Accounts Payable - Southern Supplies 68

Step5: Record payment to supplier

Debit Accounts Payable - Southern Supplies $68, Credit Cash $68.

DATE ACCOUNT TITLE DOC. NO. POST. REF. GENERAL DEBIT GENERAL CREDIT SALES CREDIT CASH DEBIT CASH CREDIT
Aug 11 Accounts Payable - Southern Supplies Check No. 3 68 68
Aug 11 Cash 68

Step6: Record electricity bill payment

Debit Utilities Expense $180, Credit Cash $180.

DATE ACCOUNT TITLE DOC. NO. POST. REF. GENERAL DEBIT GENERAL CREDIT SALES CREDIT CASH DEBIT CASH CREDIT
Aug 12 Utilities Expense Check No. 4 180 180
Aug 12 Cash 180

Step7: Record owner's withdrawal

Debit Owner's Drawings - Mikaela Mundt $800, Credit Cash $800.

DATE ACCOUNT TITLE DOC. NO. POST. REF. GENERAL DEBIT GENERAL CREDIT SALES CREDIT CASH DEBIT CASH CREDIT
Aug 15 Owner's Drawings - Mikaela Mundt Check No. 5 800 800
Aug 15 Cash 800

Step8: Record credit sales

Debit Accounts Receivable - J. Lepowsky $412, Credit Sales $412.

DATE ACCOUNT TITLE DOC. NO. POST. REF. GENERAL DEBIT GENERAL CREDIT SALES CREDIT CASH DEBIT CASH CREDIT
Aug 16 Accounts Receivable - J. Lepowsky Sales Invoice No. 1 412
Aug 16 Sales 412 412

Step9: Record cash sales

Debit Cash $1179, Credit Sales $1179.

DATE ACCOUNT TITLE DOC. NO. POST. REF. GENERAL DEBIT GENERAL CREDIT SALES CREDIT CASH DEBIT CASH CREDIT
Aug 17 Cash Calculator tape T17 1179
Aug 17 Sales 1179 1179

Step10: Record advertising payment

Debit Advertising Expense $132, Credit Cash $132.

DATE ACCOUNT TITLE DOC. NO. POST. REF. GENERAL DEBIT GENERAL CREDIT SALES CREDIT CASH DEBIT CASH CREDIT
Aug 18 Advertising Expense Check No. 6 132 132
Aug 18 Cash 132

Answer:

The journal entries are shown above in the table - format for each transaction.