Accounting Solution 4.2 (Double-entry Accounting System)

Find the answers in the tables presented below.

No.	Date	Account titles	Debit	Credit
1	Jan. 15	Cash Contributed Capital	20,000	20,000
2	Jan. 31	Prepaid Insurance Cash	2,400	2,400
3	Feb. 28	Cash Unearned Revenue	3,600	3,600
4	March 14	Supplies Accounts Payable	3,000	3,000
5	March 25	Cash Services Revenue	5,000	5,000
6	April 16	Utility Expense Accounts Payable	2,500	2,500
7	May 31	Certificate of Deposit Cash	4,000	4,000
8	June 17	Accounts Receivable Services Revenue	3,500	3,500
9	June 30	Car Cash	3,000	3,000
10	July 28	Cash Accounts Receivable	3,000	3,000
11	Aug. 23	Accounts Payable Cash	3,500	3,500
12	Sep. 5	Distributions Cash	1,500	1,500
a1)	Dec. 31	Insurance Expense Prepaid Insurance	1,100 (1)	1,100 (1)
a2)	Dec. 31	Unearned Revenue Services Revenue	3,000 (2)	3,000 (2)
a3)	Dec. 31	Supplies Expense Supplies	2,500 (3)	2,500 (3)
a4)	Dec. 31	Interest Receivable Interest Revenue	163 (4)	163 (4)
a5)	Dec. 31	Depreciation Expense Accumulated Depreciation	1,500 (5)	1,500 (5)
a6)	Dec. 31	Salaries Expense Salaries Payable	1,000	1,000

Notes:
(1) Insurance Expense: $2,400 x (11 months / [2 years x 12 months]) = $1,100
(2) Services Revenue: $3,600 x (10 months / 12 months) = $3,000
(3) Supplies Expense: $3,000 - $500 = $2,500
(4) Interest Revenue: $4,000 x 7% x (7 months / 12 months) = $163 - rounded
(5) Depreciation Expense: ($3,000 - 0) / 2 years = $1,500.

Assets		=	Liabilities		+	Equity
Cash			Accounts Payable			Contributed Capital
(1) 20,000 (3) 3,600 (5) 5,000 (10) 3,000	(2) 2,400 (7) 4,000 (9) 3,000 (11) 3,500 (12) 1,500		(11) 3,500	(4) 3,000 (6) 2,500			(1) 20,000
							Bal. 20,000
				Bal. 2,000
						Services Revenue
			Unearned Revenue				(5) 5,000 (8) 3,500 (a2) 3,000
Bal. 17,200			(a2) 3,000	(3) 3,600
				Bal. 600
							Bal. 11,500
Accounts Receivable			Salaries Payable
(8) 3,500	(10) 3,000			(a6) 1,000		Interest Revenue
Bal. 500				Bal. 1,000			(a4) 163
							Bal. 163
Supplies
(4) 3,000	(a3) 2,500					Salaries Expense
Bal. 500						(a6) 1,000
						Bal. 1,000
Prepaid Insurance
(2) 2,400	(a1) 1,100					Depreciation Expense
Bal. 1,300						(a5) 1,500
						Bal. 1,500
Interest Receivable
(a4) 163						Supplies Expense
Bal. 163						(a3) 2,500
						Bal. 2,500
Car
(9) 3,000						Insurance Expense
Bal. 3,000						(a1) 1,100
						Bal. 1,100
Certificate of Deposit
(7) 4,000						Utility Expense
Bal. 4,000						(6) 2,500
						Bal. 2,500
Accumulated
Depreciation						Distributions
(a5) 1,500						(12) 1,500
Bal. 1,500						Bal. 1,500

Totals
Assets 25,163		=	Liabilities 3,600		+	Equity 21,563
Assets 25,163		=	Claims 25,163

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Accounting Solution 4.2 (Double-entry Accounting System)