Practice – Journaling Basic Accounting Entries

If you’re taking Financial Accounting, I previously suggested Professor Tony Bell’s video series to use in tandem with your studies. He gives you enough to start working on the basic problems.

For example, after going through Unit 2 on journaling entries I was able to work through a few exercises from my old textbook. Entitled Financial and Managerial Accounting 11e by Warren, Reeve and Duchac, you can view the textbook resources on Cengage for the general blank working papers.

Check out Financial and Managerial Accounting 11e Student Resources.

View the textbook on Google Books – Financial and Managerial Accounting 11e (may be missing some pages). Now before we start, here are some things to keep in mind:

  • The normal balances within the accounting equation
  • The types of accounts or chart of accounts used
  • The formatting of the general journal and the entries

Applying What You’ve Learned

Here are some exercises I did after viewing Professor Tony Bell’s videos from Unit 2. They are taken from Chapter 2 of Financial and Managerial Accounting 11e.

I’ve also provided the solutions below as a download. However, take a shot at the problems first to see how you’ve done. The type of transactions are divided as well. So keep them in mind when you’re analyzing what the account type is.

Let’s start!

Journal entry for asset purchased

  • Prepare a journal entry for the purchase of office equipment on March 4 for $27,150, paying $5,000 in cash and the remainder on account.
  • Prepare a journal entry for the purchase of office supplies on August 7 for $4,000, paying $1,000 cash and the remainder on account.

Journal entry for fees earned

  • Prepare a journal entry on September 6 for fees earned on account, $8,000.
  • Prepare a journal entry on May 29 for cash received for services rendered, $5,000.

Journal entry for dividends

  • Prepare a journal entry on December 22 for the payment of dividends of $10,000.
  • Prepare a journal entry on February 3 for the payment of dividends of $7,500.

Exercise: Chalet Co.

Chalet Co. has the following accounts in its ledger:

Cash                                Accounts Receivable                      Supplies

Office Equipment            Accounts Payable                           Capital Stock

Retained Earnings           Dividends                                        Fees Earned

Rent Expense                  Advertising Expense                       Utilities Expense

Miscellaneous Expense

Journalize the following selected transactions for October 2012 in a two-column journal. Journal entry explanations may be omitted.

1. Paid rent for the month, $2,000.
2. Paid advertising expense, $900.
5. Paid cash for supplies, $1,300.
6. Purchased office equipment on account, $16,000.
10. Received cash from customers on account, $6,700.
15. Paid creditor on account, $1,200.
27. Paid cash for repairs to office equipment, $600.
30. Paid telephone bill for the month, $180.
31. Fees earned and billed to customers for the month, $26,800.
31. Paid electricity bill for the month, $400.
31. Paid dividends, $3,000.

Solutions to the Exercises

Download the solutions in DOCX format. You’ll find the both the problems and solutions.

Get the solutions to the problems.

Until next time, to your accounting advancement!

-Thu

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