Required 1. Enter the balances as of 11/30/2021 in the general ledger. 2. Prepare journal entries to record each of the December transactions for Premier Construction. If an event is not a transaction, write the date and “no entry needed" on the journal page. The explanation on the journal and in the general ledger must include at a minimum the available document reference and a name (for example Check 100; Ellie Smith).

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Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries
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John Doe founded Premier Construction. Operations started on October 1, 2021.
John's son, a teenager, kept the books for the first two months. John decides that it is time
to hire a bookkeeper with formal training. He asks you to record the activity for December
and to complete the accounting cycle for the quarter ended December 31, 2021.
The trial balance as of 11/30/2021 and the detail for the Accounts Receivable account
balance is on page 2.
The December 2021 events are on page 3.
Additional Information:
Ellie Smith is the only employee. She is paid on the 1st of month for the pay period
ending on the last day of the prior month and on the 16th of the month for the pay
period covering the first fifteen days of the current month.
Required
1. Enter the balances as of 11/30/2021 in the general ledger.
2. Prepare journal entries to record each of the December transactions for Premier
Construction.
If an event is not a transaction, write the date and "no entry needed" on the
journal page.
The explanation on the journal and in the general ledger must include at a
minimum the available document reference and a name (for example Check 100;
Ellie Smith).
3. Post those entries to the accounts in the ledger.
The explanation in the general ledger must include at a minimum the available
document reference and a name (for example Check 100; Ellie Smith).
Transcribed Image Text:John Doe founded Premier Construction. Operations started on October 1, 2021. John's son, a teenager, kept the books for the first two months. John decides that it is time to hire a bookkeeper with formal training. He asks you to record the activity for December and to complete the accounting cycle for the quarter ended December 31, 2021. The trial balance as of 11/30/2021 and the detail for the Accounts Receivable account balance is on page 2. The December 2021 events are on page 3. Additional Information: Ellie Smith is the only employee. She is paid on the 1st of month for the pay period ending on the last day of the prior month and on the 16th of the month for the pay period covering the first fifteen days of the current month. Required 1. Enter the balances as of 11/30/2021 in the general ledger. 2. Prepare journal entries to record each of the December transactions for Premier Construction. If an event is not a transaction, write the date and "no entry needed" on the journal page. The explanation on the journal and in the general ledger must include at a minimum the available document reference and a name (for example Check 100; Ellie Smith). 3. Post those entries to the accounts in the ledger. The explanation in the general ledger must include at a minimum the available document reference and a name (for example Check 100; Ellie Smith).
Premier Construction had the following transactions and events in December 2021.
Dec.
Issued check 100 to paid Ellie Smith's wages; $2,000.
1
Received Check 10239 for $1,700 from City of Modesto for the receivable from
November; Ref.: CR-1201
Purchased $2,100 of supplies on account from Specialty Materials; Ref.: SM-1204
4
City of Escalon accepted Premier's bid of $12,000 on a proposed project. City of
Escalon made a $4,000 down payment (Check 50293); Ref.: CR-1202
Issued check 101 to the order of Stanislaus County Tax Collector to pay for the
9
property taxes on John Doe's personal residence; $2,500.
15 Completed a project for Chang Inc. and received $3,800 at the time of service
(Check 1001); Ref.: CR-1203.
16 Received a bill from Ray Consulting for the work it performed on the Chang Inc.
project; Ref.: RC-1216 for $1,900.
16 Issued check 102 payable to Ellie Smith for $2,028. The check pays Ellie for ten
days of work at the rate of $200 per day and business mileage (50 miles at $0.56
per mile).
19 Received a debit memo from the bank notifying Premier Construction that Chang's
check 1001 bounced; Ref.:DM-NSF.
20 Returned $600 of supplies purchased from Specialty Materials on 12/4. Specialty
Materials issued a credit memo; Ref.: VCM-SM1204
22 Received $1,600 from Clark Co. on its receivable (Check 200); Ref.: CR-1204
25 Issued check 103 for $1,500 to A Plus Architecture as a down payment for an
upcoming project.
28 Issued check 104 to Google Ads for next month's advertising costs; $600.
31 Completed the work agreed to on the contract awarded on December 5. Invoiced
City of Escalon $8,000 which is the contract amount of $12,000 less the advance
payment of $4,000; Invoice 100
31 Issued check 105 to pay Specialty Materials for the balance on account.
3.
Transcribed Image Text:Premier Construction had the following transactions and events in December 2021. Dec. Issued check 100 to paid Ellie Smith's wages; $2,000. 1 Received Check 10239 for $1,700 from City of Modesto for the receivable from November; Ref.: CR-1201 Purchased $2,100 of supplies on account from Specialty Materials; Ref.: SM-1204 4 City of Escalon accepted Premier's bid of $12,000 on a proposed project. City of Escalon made a $4,000 down payment (Check 50293); Ref.: CR-1202 Issued check 101 to the order of Stanislaus County Tax Collector to pay for the 9 property taxes on John Doe's personal residence; $2,500. 15 Completed a project for Chang Inc. and received $3,800 at the time of service (Check 1001); Ref.: CR-1203. 16 Received a bill from Ray Consulting for the work it performed on the Chang Inc. project; Ref.: RC-1216 for $1,900. 16 Issued check 102 payable to Ellie Smith for $2,028. The check pays Ellie for ten days of work at the rate of $200 per day and business mileage (50 miles at $0.56 per mile). 19 Received a debit memo from the bank notifying Premier Construction that Chang's check 1001 bounced; Ref.:DM-NSF. 20 Returned $600 of supplies purchased from Specialty Materials on 12/4. Specialty Materials issued a credit memo; Ref.: VCM-SM1204 22 Received $1,600 from Clark Co. on its receivable (Check 200); Ref.: CR-1204 25 Issued check 103 for $1,500 to A Plus Architecture as a down payment for an upcoming project. 28 Issued check 104 to Google Ads for next month's advertising costs; $600. 31 Completed the work agreed to on the contract awarded on December 5. Invoiced City of Escalon $8,000 which is the contract amount of $12,000 less the advance payment of $4,000; Invoice 100 31 Issued check 105 to pay Specialty Materials for the balance on account. 3.
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