Chapter Journal Review

Received Cash from Owner as an Investment Lesson 3-1 Received Cash from Owner as an Investment Cash 2,000.00 January 2. Received cash from owner as an investment, $2,000.00. Receipt No. 1. Michael Delgado, Capital 2,000.00

Lesson 3-1 Paid Cash for Supplies Supplies January 2. Paid cash for supplies, $165.00. Check No. 1. Cash 165.00 Cash 165.00

Paid Cash for Insurance Lesson 3-2 Paid Cash for Insurance January 3. Paid cash for insurance, $900.00. Check No. 2. Prepaid Insurance 900.00 Cash 900.00

Bought Supplies on Account Lesson 3-2 Bought Supplies on Account January 5. Bought supplies on account from Canyon Office Supplies, $220.00. Memorandum No. 1. Supplies 220.00 Accounts Payable—Canyon Office Supplies 220.00

Accounts Payable—Canyon Office Supplies Lesson 3-2 Paid Cash on Account Accounts Payable—Canyon Office Supplies 100.00 January 9. Paid cash on account to Canyon Office Supplies, $100.00. Check No. 3. Cash 100.00

Received Cash from Sales Lesson 3-3 Received Cash from Sales January 10. Received cash from sales, $1,100.00. Calculator Tape No. 10. Cash 1,100.00 Sales 1,100.00

Sold Services on Account Lesson 3-3 Sold Services on Account January 12. Sold services on account to Main Street Services, $500.00. Sales Invoice No. 1. 500.00 Accounts Rec.—Main Street Services Sales 500.00

Paid Cash for an Expense Lesson 3-3 Paid Cash for an Expense January 12. Paid cash for communications bill including cell phone and Internet services, $80.00. Check No. 4. Communications Expense 80.00 Cash 80.00

Received Cash on Account Lesson 3-3 Received Cash on Account January 16. Received cash on account from Main Street Services, $200.00. Receipt No. 2. Cash 200.00 Accounts Receivable—Main Street Services 200.00

Paid Cash to Owner as Withdrawal of Equity Lesson 3-3 Paid Cash to Owner as Withdrawal of Equity January 16. Paid cash to owner for a withdrawal of equity, $350.00. Check No. 6. Michael Delgado, Drawing 350.00 Cash 350.00

Lesson 3-4 Ruling a Journal Page

Starting a New Journal Page Lesson 3-4 Starting a New Journal Page

Proving and Ruling a Journal at the End of a Month Lesson 3-4 Column Debit Column Total Credit Column Total General 5,748.00 $2,525.00 Sales 5,820.00 Cash 7,120.00 4,523.00 Totals $12,868.00 Totals equal

Proving Cash 1. Calculate the cash balance. Lesson 3-4 Proving Cash 1. Calculate the cash balance. Cash on hand at the beginning of the month $ 0.00 Plus total cash received during the month +7,120.00 Equals total $ 7,120.00 Less total cash paid during the month –4,523.00 Equals cash balance at the end of the month $ 2,597.00 2. Verify that the cash balance equals the checkbook balance on the next unused check stub in the checkbook. Checkbook balance on the next unused check stub $ 2,597.00

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