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I NEED SOME ASSISTANCE WITH A COLLEGE ACCOUNTING PROBLEM, I'D APPRECIATE ANY HELP. THANKS! HOW WOULD I RECORD THE FOLLOWING PROBLEM Pompano Beach Highlands A GENERAL JOURNAL AND GENERAL LEDGER. THE FOLLOWING TRANSACTIONS WERE COMPLETED BY ROBBIN'S LANDSCAPING SERVICE: MARCH 1: ROBBIN DEPOSITED 20,000 Pompano Beach Highlands BUSINESS MARCH 4: ROBBIN INVESTED HER PERSONAL GARDENING EQUIPMENT Pompano Beach Highlands THE BUSINESS (WHICH HAS MARKET VALUE OF 1,000.) MARCH 6: BOUGHT USED TRAILER ON ACCT FROM ROTH SALES, FOR $850. INV. 314. MARCH 7: PAID RENT FOR MONTH, $600. CHECK #1000. MARCH 9: BOUGHT USED BACKHE FROM MOBILE EQUIPMENT FOR $6,200. PAYING $3,000 OF IT Pompano Beach Highlands CASH AND PLACING THE BALANCE ON ACCOUNT. INV. 4166, CHECK #1001. ROBBIN'S LANDSCAPING SERVICE HAS THE FOLLOWING CHART OF ACCOUNTS: 111 CASH 113 ACCTS RECIEVABLE 117 PREPAID INSURANCE 124 EQUIPMENT 411 LANDSCAPING INCOME 221 ACCTS PAYABLE 311 CAPITAL 312 DRAWING 511 SALARY EXPENSE 512 RENT EXPENSE 513 GAS/OIL EXPENSE 514 UTILITIES 515 SUPPLIES EXP ANY HELP IS MORE THAN APPRECIATED! EVEN IF YOU CAN HELP WITH ONE OF THE TRANSACTIONS I'D BE THANKFUL. THANKS Pompano Beach Highlands ADVANCE!!! :)
I have a really good idea that it would be: MARCH 1: ROBBIN DEPOSITED 20,000 Pompano Beach Highlands BUSINESS Dr. Cash 20000 Cr. Capital 20000 MARCH 4: ROBBIN INVESTED HER PERSONAL GARDENING EQUIPMENT Pompano Beach Highlands THE BUSINESS (WHICH HAS MARKET VALUE OF 1,000.) Dr. Equipment 1000 Cr. Capital 1000 MARCH 6: BOUGHT USED TRAILER ON ACCT FROM ROTH SALES, FOR $850. INV. 314. Dr. Equipment 850 Cr. Accounts Payable 850 MARCH 7: PAID RENT FOR MONTH, $600. CHECK #1000. Dr. Rent Expense 600 Cr. Cash 600 MARCH 9: BOUGHT USED BACKHE FROM MOBILE EQUIPMENT FOR $6,200. PAYING $3,000 OF IT Pompano Beach Highlands CASH AND PLACING THE BALANCE ON ACCOUNT. INV. 4166, CHECK #1001. Dr. Equipment 6200 Cr. Cash 3000 Accounts Payable 3200
With your entry as: electricity dr: 700 gst dr 70 Bank cr 770 was this your entry to record the issuance of check number 1? if it is then here's my answer to your question: since the company recorded the check previously cancelled for sending it to the wrong party and has issued a new check number 7 in replacement to the check number 1 then you should not do entry again to reflect the new issuance of a check. since the first check was cancelled it means that it wasnt cleared yet by the bank. and so there would be necessary book entry to reflect it cos you already have established previously an entry to record the payment of the electricity. you only have to do the reversing entry of your previous entry if the company hasnt cancelled the first check and hasnt issued a new one to replace it. i hope this helps you understand your case