Pacific Trucking

Opening Entry Purpose: To record balances to establish accounts at the beginning of a new fiscal period

Accounting Cycle Transaction Occurs Journal entry

Opening Entry ASSETS (DEBIT ACCOUNTS FIRST) Date! ASSETS (DEBIT ACCOUNTS FIRST) LIABILITIES (CREDIT ACCOUNTS) OWNER’S EQUITY (Listed last) Brief Explanation!

Transactions Date! Debit Account Credit Account Brief Explanation!

Transaction Occurs Journal entry Accounting Cycle Transaction Occurs Journal entry Posting to the ledger  a record of individuals accounts & balances (t- accounts)

ASSETS Cash A/R- W. Caruso A/R- R. Van Loon Supplies Trucks Equipment (OB) 3 265 (OB) 150 (OB) 620 Supplies Trucks Equipment (OB) 2 465 (OB) 55 075 (OB) 22 174

LIABILITIES & OWNER’S EQUITY Bank Loan A/P- Packham Supply B. Rissien, Capital (OB) 18 000 (OB) 3 946 (OB) 60287 A/P- Dini Bros. (OB) 1 516

Transaction 1: $200 of supplies is purchased from Packham supply to be paid at a later date A/P- Packham Supply (OB) 2 465 (OB) 3 946 (1) 200 (1) 200

Transaction 2: $500 IS PAID TO Dini Bros Transaction 2: $500 IS PAID TO Dini Bros. In part payment of the amount owed to them Cash A/P- Dini Bros. (OB) 3 265 (2) 500 (2) 500 (OB) 1 516

Transaction 3: $200 cash is received from R Transaction 3: $200 cash is received from R. Van Loon in part payment of his debt Cash A/R- R. Van Loon (OB) 3 265 (2) 500 (OB) 620 (3) 200 (3) 200

Transaction 4: A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed Cash B. Rissien, Capital (OB) 3 265 (2) 500 (OB) 2 465 (3) 200 (4) 400 (4) 400

Transaction 5: A used truck costing $8 000 is purchased from Dini Bros Transaction 5: A used truck costing $8 000 is purchased from Dini Bros. A cash down payment of $2 500 is made at the time of the purchase and the balance is paid at a later date. Trucks Cash A/P- Dini Bros. (OB) 3 265 (2) 500 (OB) 1 516 (OB) 55 075 (2) 500 (5) 5 500 (5) 8 000 (3) 200 (5) 2 500 (4) 400

Transaction 6: A delivery is completed for R Transaction 6: A delivery is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is made but agrees to pay within 60 days. A/R- R. Van Loon B. Rissien, Capital (OB) 620 (3) 200 (OB) 2 465 (6) 350 (4) 400 (6) 350

Transaction 7: One of the lifting machines (part of equipment) breaks down. $650 cash is spent on repairing the machine. Cash B. Rissien, Capital (OB) 3 265 (2) 500 (7) 650 (OB) 2 465 (3) 200 (4) 400 (5) 2 500 (4) 400 (7) 650 (6) 350

Total ALL of the T-ACCOUNTS Cash (OB) 3 265 (2) 500 Supplies A/R- W. Caruso (3) 200 (5) 2 500 (OB) 2 465 (OB) 150 (4) 400 (7) 650 (1) 200 150 2 665 3 865 3 650 215 A/R- R. Van Loon Trucks Equipment (OB) 620 (3) 200 (OB) 55 075 (OB) 22 174 (6) 350 (5) 8 000 22 174 970 200 63 075 770

Liabilities & Owner’s Equity Bank Loan A/P- Dini Bros. B. Rissien, Capital (OB) 18 000 (2) 500 (OB) 1 516 (7) 650 (OB) 2 465 18 000 (5) 5 500 (4) 400 500 7 016 (6) 350 650 61 037 6 516 A/P- Packham Supply 60 387 (OB) 3 946 (1) 200 4 146

ex. 3 & 5, p. 182-183 (t), p. 120 (wk), ex. 2 & 3, p. 91-92 (t), p ex. 3 & 5, p. 182-183 (t), p. 120 (wk), ex. 2 & 3, p. 91-92 (t), p. 48 (w) Ex. 3 p. 110-111 (t), p. 55 (w) Read section 4.4 p. 111-114 (t) & answer Ex. 1-4 p. 115-116 (t), p. 58-59 (w)