1. PACIFIC TRUCKING

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

3. ACCOUNTING CYCLE 1.Transaction Occurs 2.Journal entry

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

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

7. ACCOUNTING CYCLE 1.Transaction Occurs 2.Journal entry 3.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 (OB) 2 465(OB) 55 075(OB) 22 174

9. LIABILITIES & OWNER’S EQUITY Bank Loan B. Rissien, Capital A/P- Dini Bros. A/P- Packham Supply (OB) 18 000 (OB) 1 516 (OB) 3 946(OB) 2 465

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

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

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

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 (OB) 3 265 (2) 500 (3) 200 B. Rissien, Capital (OB) 2 465 (4) 400

14. 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 (OB) 55 075 A/P- Dini Bros. (OB) 1 516 (2) 500 Cash (OB) 3 265 (2) 500 (3) 200 (4) 400 (5) 8 000 (5) 2 500 (5) 5 500

15. 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. B. Rissien, Capital (OB) 2 465 (4) 400 (3) 200 A/R- R. Van Loon (OB) 620 (6) 350

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

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

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

19. Ex. 3 & 5 p. 163-164 (t), p. 85 (w) Ex. 2 p. 83 (t), p. 34 (w)