1. Pacific Trucking

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

3. Accounting Cycle
Transaction Occurs
Journal entry

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

5. Transactions
Date!
Debit Account
Credit Account
Brief Explanation!

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

8. 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)
(OB)

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

10. 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

11. 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

12. 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

13. 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

14. 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)
(2) 500
(5) 5 500
(5) 8 000
(3) 200
(5) 2 500
(4) 400

15. 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

16. 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

17. 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)
(OB)
(6) 350
(5) 8 000
22 174
970
200
63 075
770

18. Liabilities & Owner’s Equity
Bank Loan
A/P- Dini Bros.
B. Rissien, Capital
(OB)
(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

19. ex. 3 & 5, p. 182-183 (t), p. 120 (wk), ex. 2 & 3, p. 91-92 (t), p
ex. 3 & 5, p (t), p. 120 (wk), ex. 2 & 3, p (t), p. 48 (w)
Ex. 3 p (t), p. 55 (w)
Read section 4.4 p (t) & answer Ex. 1-4 p (t), p (w)