[laruud]

I have been working on this assignment for two days now, and I just can't seem to get the dang thing to balance. Any help is appreciated.

I have to prepare May journal entries for the following, then do a trial balance.

Investment of $1250.
Purchase of equipment for $2000 by paying $800 cash and signing a note with 10% rate annually and August 31 maturity date. (this occurred on May 1)
Paid $250 for supplies
Paid $150 for rental equipment to be used during May
Arranged for the rental of equipment during May for $200; Paid $100 cash with remaining $100 due June 1
Received$1500 for lessons provided during May
Received $400 in fees for the use of the equipment during May
Paid $600 in wages during May
Provided two lessons @ $55 each that was paid in April
Paid $120 for misc expenses
Collected $35 on account
Received $800 for salary
Paid $90 on account
Withdrew $270
Leftover supplies equal $150
Depreciation on equipment totaled $50
Determine accrued interest.

Here are the journal entries that I have come up with. Can anyone point out my mistake?

a) Stone, Capital 1250
Cash 1250
b) Equipment 2000
Cash 800
Notes Payable 1200
c) Tennis Supplies 250
Cash 250
d) Prepaid Rent 150
Cash 150
e) Rent Expense 100
Cash 100
f) Cash 1500
Lesson fees earned 1500
g) Cash 400
Machine fees earned 400
h) Wage Expense 600
Cash 600
I) Unearned Revenue 110
Lesson fees earned 110
j) Miscellaneous Expense 120
Cash 120
k) Cash 35
Accounts Receivable 35
l) Cash 800
Salary fees earned 800
m) Accounts payable 90
Cash 90
n) Stone, Drawing 270
Cash 270
o) Supplies Expense 220
Supplies 220
p) Depreciated Expense 50
Accumulated Depreciation 50

I also need help figuring out the interest. I have worked on this and think that I have the right journal entries, but it isn't adding up. I'm not trying to get anyone to do it for me, just please help me figure out my mistake.

Thanks in advance!

[riwaz1998]

Lol

[pready]

a. The investment should be a Debit to Cash and a Credit to Onwers Capital.

e. Rental should be a Debit to Rent Expense for $200 and a Credit to Cash for $100 and a Credit to Accounts Payable for $100

I. This transaction does not make any sense. I would think that the owner withdrew money from the business. The journal entry would be a Debit to Owners Drawing and a Credit to Cash.

If the owner is receiving a salary the journal entry would be a Debit Salary Expense and a Credit to Cash.

If you provided services then the journal entry will be a Debit to Cash and a Credit to Service Revenue.

O. The amount should be $100, unless you had a beginning amount in the Supplies account. This the purchase of supplies plus the beginning balance minus the actual balance onhand at the end of the month.

P. This is for the loan amount on the purchase of equipment. So the loan was for $1,200 times 10% interest times 1/12 (one month of use) equals your accured interest amount. The journal entry will be a Debit to Interest Expense and a Credit to Interest Payable for the amount of your accure interest amount.

The rest of your journel entries look correct. I would verify the transaction regarding the receiving a salary for $800, transaction number I.