Bellmead Auto Repair

Balance Sheet
December 31, 20X7
ASSETS
Cash
Accounts receivable
OFFICE Supplies
Petty cash Fund
Building
Total assets

LIABILITIES
$16,000 Accounts payable
$ 8,000
7,000
1,000
OWNERS EQUITY
1,000 Owner, capital
17,000
Total liabilities and
0
$25,000

owners equity

$25,000

Bellmead Auto RepairHOSPITAL

Statement of Owners Equity
Year Ended December 31, 20X7
Owner, capital, December 31, 20X6
Add: Net income for the year

$13,000
40,000
53,000
(36,000)
$17,000

Less: Withdrawals by owner

Owner, capital, December 31, 20X7

Prepare Journals, T AccountsTRIAL

STATEMENT, and BALANCE for Year DEC31, 20X8

Bellmead Auto Repair and Hospital JOURNAL

Date
Jan

Type of Transaction
1

Paid 4 ,000 for land by a note payable

Feb

Mar

Purchased medical supplies of $ 2,000 on account.

Paid office rent by cash of $,000.

19

Paid $13 in pencils and $12 in Petty Cash fror glue from petty cash
Gave receipt to Accountant.

20

Purchased Building to last for 1 years by Note Payable for $1

0,000.

22

Received utility bill for $2 00, booked it. Did not pay.

25

Paid salary with cash of $3, 00.

26

Paid Interest expense in Bank Account for $6 0

26

Reimbursed Petty Cash Fund $25; (Paid $1 glue and $13 pencil out of
Petty Cash earlier)

26

You had repaired company equipment, paid cash $1 000

You repaired others truck and was paid $20k in cash and 180k on
account.

28

Customer got broken fixed, paid cash $3,500

Used $500 in Office Supplies
Owner took $2,000 out of cash for personal use.

ARE ENTRIEST ACCOUNTS,

INCOMESTAT

T ACCOUNTS AT BEGINNING:

T Account (Ledger)
DATE

DEC

Cash ACCOUNT AND EXPLANATIONS

POST.
REF.

31 CASH

DEBIT

CREDIT

16k

T Account (Ledger)
DATE

DEC

Accounts Receivable & EXPLANATIONS

POST.
REF.

31 Accts Receviable

DEBIT

CREDIT

7k

T Account (Ledger)
DATE

Dec

Supplies (Medical only)ACCOUNTS AND

EXPLANATIONS

POST.
REF.

31 Office Supplies

DEBIT

CREDIT

1k

T Account (Ledger)
DATE

Dec

Accounts Payable, ACCOUNTS AND

EXPLANATIONS

31 Petty Cash

POST.
REF.

DEBIT

1k

CREDIT

T Account (Ledger)
Notes Payable ACCOUNTS AND
EXPLANATIONS

DATE

Dec

POST.
REF.

DEBIT

31 Accounts Payable

CREDIT

8k

T Account (Ledger)
DATE

Dec

Utility ACCOUNTS AND EXPLANATIONS

POST.
REF.

DEBIT

31 Owner

Debits 25K = CREDITS 25k

NOTE: ASSETS = LIABILITY
(25k=8K+17K)

17k

&

OWNERS

JOURNAL ENTRIES

1/1 Dr LAND
CR
Notes Payable

CREDIT

45K
45k

EQUITY

Jan2 DR MEDICAL SUPPLIES

CR
Accounts Payable
Feb 2 Dr Rent Expense
CR
Cash
Feb 19

Mar

Mar

3k
3k

150k
150k

22 Dr Utility Expense
Cr
Accounts Payable

2k

25 Dr Salary Expense
Dr
Cash

3.3k

Mar 26
Mar

12k

NO ENTRIES

FEB 20 Dr Building
CR Notes Payable
Mar

12k

26

26

Mar 26

Mar 28
Mar 28
Mar 28

2k
3.3k

Dr Interest Expense
Cr
Cash

.6k

Dr Glue Expense
Dr Pencils Expense
Cr
Cash

.012k
.013k

Dr Repair Expense
Cr
Cash

16k

Dr Cash
Dr Accounts Receviable
Cr
Repair Revenue

20k
180k

.6k

.025k
16k

200k

Dr
CR

Cash

3.5k

Dr
Cr

Office Supplies Expense

Office Supplies

.5k

Dr
Cr

Owner
Cash

2k

Medical Revenue

3.5k
.5k
2k

TRIAL BALANCE

437.925

437.925

Once you make Debits=Credits, Now you post to T Accounts the Journal Entries.
Then another Trail Balance is ran; Debit T Account Balances must equal credit T
Account Balances.
Once you complete your two Trial Balances You perform your CLOSING
ENTRIES where you reverse all T Account Expense Balances to T Income
Summary as Debit, All T Account Revenue Balances to T Income Summary Credit,
and the Balance of Income Summary to OWNERS as Net Income Net Credit.
Then you prepare INCOME STATEMENT and NEW BALANCE SHEET.
CONGRADULATIONS, YOU ARE NOW AN ACCOUNTANT (CPA,CIA,CMA,
ACCA, CAAF)

T Account (Ledger)
DATE

Cash ACCOUNT AND EXPLANATIONS

DEC
Feb
Mar

31 CASH
2 Rent Expense
25 Salary Expense

Mar

26 Interest expense

Mar

26 Petty Cash Expense (Pencil

POST.
REF.

DEBIT

CREDIT

16k
3k
3.3k
.6k
.025k

Exp, Glue Expense)

Mar

26 Repair Expense

Mar

26 Repair Revenue

20k

Mar

28 Medical Revenue

3.5k

Mar

28 Owners Drawing
E

Debit

14.575

16k

2k
BALANC

39.5k

24.92
5

T Account (Ledger)
DATE

DEC

Accounts Receivable & EXPLANATIONS

POST.
REF.

31 Accts Receviable

DEBIT

CREDIT

7k

T Account (Ledger)
DATE

Dec

Supplies (Medical only)ACCOUNTS AND

EXPLANATIONS

31 Office Supplies

POST.
REF.

DEBIT

1k

CREDIT

T Account (Ledger)
DATE

Dec

Accounts Payable, ACCOUNTS AND

EXPLANATIONS

POST.
REF.

31 Petty Cash

DEBIT

CREDIT

1k

T Account (Ledger)
DATE

Dec

Notes Payable ACCOUNTS AND

EXPLANATIONS

POST.
REF.

DEBIT

31 Accounts Payable

CREDIT

8k

T Account (Ledger)
DATE

Dec

Utility ACCOUNTS AND EXPLANATIONS

POST.
REF.

DEBIT

31 Owner

CREDIT

17k

T Account (Ledger)
DATE

Cash ACCOUNT AND EXPLANATIONS

POST.
REF.

DEBIT

CREDIT

T Account (Ledger)
DATE

Accounts Receivable & EXPLANATIONS

POST.
REF.

DEBIT

CREDIT

DEBIT

CREDIT

DEBIT

CREDIT

T Account (Ledger)
DATE

Supplies (Medical only)ACCOUNTS AND

EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Accounts Payable, ACCOUNTS AND

EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Notes Payable ACCOUNTS AND

EXPLANATIONS

POST.
REF.

DEBIT

CREDIT

DEBIT

CREDIT

DEBIT

CREDIT

DEBIT

CREDIT

T Account (Ledger)
DATE

Utility ACCOUNTS AND EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Salary ACCOUNTS AND EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Owner, Capital, ACCOUNTS AND

EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Owner, Withdrawal of Capital, ACCOUNTS AND

EXPLANATIONS

POST.
REF.

DEBIT

CREDIT

DEBIT

CREDIT

DEBIT

CREDIT

T Account (Ledger)
DATE

Office Supplies ACCOUNTS AND

EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

RENT ACCOUNTS AND EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Cash ACCOUNT AND EXPLANATIONS

POST.
REF.

DEBIT

CREDIT

DEBIT

CREDIT

DEBIT

CREDIT

DEBIT

CREDIT

T Account (Ledger)
DATE

Accounts Receivable & EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Supplies (Medical only)ACCOUNTS AND

EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Accounts Payable, ACCOUNTS AND

EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Notes Payable ACCOUNTS AND

EXPLANATIONS

POST.
REF.

DEBIT

CREDIT

DEBIT

CREDIT

DEBIT

CREDIT

T Account (Ledger)
DATE

Utility ACCOUNTS AND EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Salary ACCOUNTS AND EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Revenue Auto Repair AND EXPLANATIONS

POST.
REF.

DEBIT

CREDIT

DEBIT

CREDIT

DEBIT

CREDIT

DEBIT

CREDIT

T Account (Ledger)
DATE

REVENUE ACCOUNTS
AND EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Cash ACCOUNT AND EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Accounts Receivable & EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Supplies (Medical only)ACCOUNTS AND

EXPLANATIONS

POST.
REF.

DEBIT

CREDIT

DEBIT

CREDIT

DEBIT

CREDIT

DEBIT

CREDIT

T Account (Ledger)
DATE

Accounts Payable, ACCOUNTS AND

EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Notes Payable ACCOUNTS AND

EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Utility ACCOUNTS AND EXPLANATIONS

POST.
REF.

T Account (Ledger)
DATE

Salary ACCOUNTS AND EXPLANATIONS

POST.
REF.

DEBIT

CREDIT

Trial Balance of T Accounts(Debits =Credits)

T ACCOUNT/LEDGER
Cash
Accounts receivable
Accounts payable
Owner, capital
Owner, withdrawals, Capital
RevenueRevenue-Hospital
Salary expense
Rent expense

DEBIT

CREDIT

SuppliesSupplies-

Rent expense

TOTAL (Debits + Credits)

REVERSING ENTRIES

Bellmead Auto Repair

Income Statement
Year Ended December 31, 20X8
Revenue:

Expenses:
Total expenses
Net income

Total expenses
Net income

Bellmead Auto Repair

Balance Sheet

December 31, 20X8

ASSETS
Cash

LIABILITIES
Accounts payable

Total assets

OWNERS EQUITY
Owner, capital
Total liabilities and
owners equity

Bellmead Auto Repair

Statement of Owners Equity
Year Ended December 31, 20X8
Owner, capital, December 31, 20X7
Add:
Net income for the year

Less:
Withdrawals by owner
Owner, capital, December 31, 20X8

Its the new Accounting Period.

Make the following entries in the new period in a Journal..

Date

Type of Transaction

Jan

1 Of the $5000 received for hospital services, the firm

earned $3000 of that
1 You invoice the $3080 automobile repair work done
and set up an Accounts Receviable.

Jan

The Engineering services that were prepaid of $4500.

Now, you use up $4,000 of those services..

Paid $19 in pencils from petty cash Gave receipt to

Accountant.

Building paint job expense amount is now prepared to

be booked as a payable. Controller approved setting
up the account of $3275.

Paid $10 in snacks for staff out of Petty cash. Got

receipt.
Received utility bill for $225, booked it. Did not pay.

Received $4000 from customer on account for future

revenue services Paid salary with cash of $3,000.

Incurred Interior Design expense for $5600, but no bill

was sent by ID firm

7
8
9

Interior Design Firm sent invoice for $5610. Controller

did not approve payment yet, payable not set up.
Controller approves Accounts Payable for $5610, but
not for payment yet
Controller approves payment of Accounts Payable for
$5610

10 Received utility bill for $225, booked it. Did not pay.
10 You receive the $4010 deposit on account for
automobile repair you are to do (future revenue)
10 You receive the $3080 for automobile repair which was
earned last period. (adjusting entry #5)
10 You receive another the $3182 for deposit for a clients
medical operation to be performed or earned later
(future revenue)