Jane Fernandez owns a service business called Jane’s Car Wash, which uses the following accounts.
Cash, Accts. Pay.—Pine Supplies, Miscellaneous Expense, Accts. Rec.—Tony’s Limos, (Jane Fernandez, Capital), Rent Expense, Supplies, (Jane Fernandez, Drawing), Repair Expense, Prepaid Insurance, Sales, Utilities Expense, Accts. Pay.—Atkin Supplies, Advertising Expense
Transactions:
June 1. Received cash from owner as an investment, $16,000.00. R1.
2. Paid cash for supplies,$300.00. C1.
3. Paid cash for rent, $900.00. C2.
4. Bought supplies on account from Atkin Supplies,$1,700.00. M1.
5. Paid cash for electric bill, $146.00. C3.
8. Paid cash on account to Atkin Supplies,$1,000.00. C4.
8. Received cash from sales, $980.00. T8.
8. Sold services on account to Tony’s Limos,$450.00. S1.
9. Paid cash for insurance, $1,200.00. C5.
10. Paid cash for repairs,$388.00. C6.
10. Received cash from sales, $476.00. T10.
11. Paid cash for miscellaneous expense,$15.00. C7.
11. Received cash from sales, $630.00. T11.
12. Received cash from sales,$900.00. T12.
15. Paid cash to owner for personal use, $400.00. C8.
15. Received cash from sales,$850.00. T15.
16. Paid cash for supplies, $1,100.00. C9.
17. Received cash on account from Tony’s Limos,$225.00. R2.
17. Bought supplies on account from Pine Supplies, $600.00. M2.
17. Received cash from sales,$500.00. T17.
18. Received cash from sales, $800.00. T18.
19. Received cash from sales,$650.00. T19.
22. Bought supplies on account from Pine Supplies, $60.00. M3.
22. Received cash from sales,$610.00. T22.
23. Paid cash for telephone bill, $85.00. C10.
23. Sold services on account to Tony’s Limos,$582.00. S2.
24. Paid cash for advertising, $125.00. C11.
24. Received cash from sales,$300.00. T24.
25. Received cash from sales, $770.00. T25.
26. Paid cash for supplies,$90.00. C12.
26. Received cash from sales, $300.00. T26.
29. Received cash on account from Tony’s Limos,$350.00. R3.
30. Paid cash to owner for personal use, $450.00. C13.
30. Received cash from sales,$500.00. T30.
Instructions:
- The journals for Jane’s Car Wash are given in the Working Papers. Use page 1 of the journal to journalize the transactions for June 1 through June 19. Source documents are abbreviated as follows: check, C; memorandum, M; receipt, R; sales invoice, S; calculator tape, T.
- Prove and rule page 1 of the journal. Carry the column totals forward to page 2 of the journal.
- Use page 2 of the journal to journalize the transactions for the remainder of June.
- Prove page 2 of the journal.
- Prove cash. The beginning cash balance on June 1 is zero. The balance on the next unused check stub is $18,642.00.
- Rule page 2 of the journal.