Financial accounting – 3 tabs of the excel file should be completed

It is time for the staff accountants to begin preparing daily accounting transactions. In preparation for the upcoming audit, the accountants must ensure that these transactions are correct and are free from any misstatement. Because this is a new subsidiary of the company, there are no beginning balances.

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As a staff accountant, your job is to do the following:

  • Prepare the 10 transactions below by posting to the general journal. You should use an Excel spreadsheet to accomplish this task.
  • Post the general journal entries to the general ledger in the Excel spreadsheet.
  • Prepare a trial balance from the ending balances on the ledger. You should also use an Excel file for the trial balance.

Transactions

  1. Invested $50,000 in the business
  2. Paid $100 for phone service
  3. Purchased $35,000 equipment on credit
  4. Paid $3,000 for 3 months rent
  5. Paid $5,500 for 6 months of insurance 
  6. Paid $1,000 for advertising on credit (Note: This is an expense to the company)
  7. Customer purchased $2,000 on account
  8. Customer in #7 paid $1,000 on account
  9. Paid for #6 advertising
  10. Sold to customer and received $5,000 cash 

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