[uithorn]

Hi,

Please could you help me journalize this "I will tell you what i did and correct me if I am wrong".

*Check#80 in the amount of $342 was issued to people CO. for payment of April invoice
(keys were purchased in April for resale)

A/P - People CO 342 Dr
Cash 342 Cr
Payment on account

*Check#81 is issued in the amount of $31 to paper frame for office supplies, bought while at the store

A/P - Paper frame 31Dr
Office supplies 31Cr
Bought supplies

*Weekly cash register summary received showing
Total sales for week: $4853
Sales Tax: $147
Cash received: $5000

Cash 5000Dr
Sales 4853Cr
Sales Tax Payable 147

*Check#83 in the amount of $85 was issued to paper frame. For payment of April invoice
(in April, the office supplies were bought on account)

A/P - Paper frame 85Dr
Cash 85Cr
Payment on Invoice

*The owner purchased $420 worth of keys from people Co. on account the keys will be resold. Invoice #421 was issued to the owner by people Co.

Purchase 420Dr
A/P - People Co 420Cr
Resale items

*Check #84 in the amount of $2000 was issued to payroll account to cover the bimonthly salaries.

Salary expenses 2000Dr
Cash 2000Cr
Payroll account

*Check #85 was issued to the owner $125 as a personal Draw on the drawing account.

Owner drawing 125Dr
Cash 125Cr
Cash Drawing

*Owner purchased $1000 worth of locks for resale from smith locks and put amount on his account. Invoice 384 was issued to owner.

Purchase 1000Dr
A/P - smith locks 1000Cr
Resale items

[AdamUTsel]

I am only concerned about your some of you AP entries. If you paid with a check, this is essentially cash. The one example where purchases were made at the store, paid by check, would be a simple DR. Purchase CR. Cash. There should only be a reduction of an AP in the purchases were made "on account".

Also, your entry regarding sales (including sales tax) looks incorrect. Your sales tax liablity should be accrued throughout the year charging the accrual against a sales tax expense. This accrual will be relieved when tax payments are submitted. I don't believe you are probably matching your revenues and expenses properly by claiming 5,000 in total sales and nothing in that period for related sales tax expenses.

Lastly, it seems like the owner withdrawing cash from the company would be a reduction in his/hers owner's equity account.

[bethann31000]

Hi,

Please could you help me journalize this "I will tell you what i did and correct me if I am wrong".

*Check#80 in the amount of $342 was issued to people CO. for payment of April invoice
(keys were purchased in april for resale)

A/P - People CO 342 Dr
Cash 342 Cr
Payment on account

*Check#81 is issued in the amount of $31 to paper frame for office supplies, bought while at the store

A/P - Paper frame 31Dr
Office supplies 31Cr
Bought supplies

*Weekly cash register summary received showing
Total sales for week: $4853
Sales Tax: $147
Cash received: $5000

Cash 5000Dr
sales 4853Cr
Sales Tax Payable 147

*Check#83 in the amount of $85 was issued to paper frame. for payment of April invoice
(in April, the office supplies were bought on account)

A/P - Paper frame 85Dr
Cash 85Cr
Payment on Invoice

*The owner purchased $420 worth of keys from people Co. on account the keys will be resold. Invoice #421 was issued to the owner by people Co.

Purchase 420Dr
A/P - People Co 420Cr
Resale items

*Check #84 in the amount of $2000 was issued to payroll account to cover the bimonthly salaries.

Salary expenses 2000Dr
Cash 2000Cr
Payroll account

*Check #85 was issued to the owner $125 as a personal Draw on the drawing account.

Owner drawing 125Dr
Cash 125Cr
Cash Drawing

*Owner purchased $1000 worth of locks for resale from smith locks and put amount on his account. Invoice 384 was issued to owner.

Purchase 1000Dr
A/P - smith locks 1000Cr
Resale items

#81 is right only if you first posted the invoice from them to AP. If not, then the entry should be Bank CR 31. And DR office Supplies 31.

#84 is wrong. The payroll checks themselves cover the payroll expense account. All you did was make a transfer from one bank to the other. CR issuing bank 2000. and DR receiving bank 2000.

That's all I see :)