ACC 211 - XYZ Services Transactions and Unadjusted Trial Balance

ACC 211 Example: Transactions for XYZ Services

Initial Formation (3/1/23)

  • The corporation is formed on March 1, 2023.
  • 10,000 shares of common stock are issued for $10,000.
  • Journal Entry:
    • Debit: Cash $10,000
    • Credit: Common Stock $10,000

Rent Payment (3/2/23)

  • Paid monthly rent of $1,000 for an office.
  • Journal Entry:
    • Debit: Rent Expense $1,000
    • Credit: Cash $1,000

Purchase of Office Supplies on Account (3/4/23)

  • Purchased $1,000 of office supplies on account.
  • Journal Entry:
    • Debit: Supplies $1,000
    • Credit: Account Payable $1,000

Payment of Annual Insurance Premium (3/4/23)

  • Paid a $1,000 annual insurance premium.
  • Journal Entry:
    • Debit: Prepaid Insurance $1,000
    • Credit: Cash $1,000

Purchase of Office Equipment on Account (3/5/23)

  • Purchased $2,000 of office equipment on account.
  • Journal Entry:
    • Debit: Equipment $2,000
    • Credit: Account Payable $2,000

Payment for Supplies (3/15/23)

  • Paid $1,000 for the supplies purchased on March 4, 2023.
  • Journal Entry:
    • Debit: Account Payable $1,000
    • Credit: Cash $1,000

Receipt of Cash for Future Services (3/22/23)

  • Received $500 from a customer for services to be performed in the future (Unearned Revenue).
  • Journal Entry:
    • Debit: Cash $500
    • Credit: Unearned Revenue $500

Provision of Services on Account (3/24/23)

  • Provided $400 of services on account for a customer.
  • Journal Entry:
    • Debit: Account Receivable $400
    • Credit: Service Revenue $400

Receipt of Cash for Services Rendered (3/29/23)

  • Received $200 from a customer for services performed on March 24, 2023.
  • Journal Entry:
    • Debit: Cash $200
    • Credit: Account Receivable $200

XYZ Services Unadjusted Trial Balance (3/31/23)

  • The unadjusted trial balance as of March 31, 2023 is presented.
  • Debits:
    • Cash: $7,700
    • Account Receivable: $200
    • Supplies: $1,000
    • Prepaid Insurance: $1,000
    • Equipment: $2,000
    • Rent Expense: $1,000
  • Credits:
    • Account Payable: $2,000
    • Unearned Revenue: $500
    • Common Stock: $10,000
    • Service Revenue: $400
  • Totals:
    • Total Debits: $12,900
    • Total Credits: $12,900