Answer :
To address Activity 4, let’s proceed step-by-step in posting transactions to the General Ledger for Jolene Hairdressers for the month of June.
### Step-by-Step Solution:
#### Step 1: Open Accounts in the General Ledger
1. Balance Sheet Accounts Section:
- Capital (B1)
- Drawings (B2)
- Equipment (B4)
- Land and Buildings (B3)
- Bank (B5): Initially open it with a balance of 6
2. Nominal Accounts Section:
- Cash Float (B6)
- Current Income (N1): Initially open it with a balance of 2
- Rent Income (N2): Open this account.
- Stationery (N6)
- Wages (N3): Initially open it with a balance of 3.
- Telephone (N7)
- Material Costs (N4): Initially open it with a balance of 3.
- Insurance (N8): Initially open it with a balance of 3.
- Trading License (N5)
- Water and Electricity (N9)
- Salaries (N10)
#### Step 2: Post the Cash Receipts Journal and Cash Payments Journal
Now, let's post the summarized totals from the Cash Receipts Journal (CRJ) and Cash Payments Journal (CPJ) for the month of June into the respective General Ledger accounts.
Assume the following transactions occurred (detailed transactions are typically found in CRJ and CPJ):
From Cash Receipts Journal (CRJ):
1. June 1: Received [tex]$10,000 from sales (`Bank` [Dr], `Current Income` [Cr]). 2. June 5: Received $[/tex]2,000 for rent (`Bank` [Dr], `Rent Income` [Cr]).
From Cash Payments Journal (CPJ):
1. June 3: Paid [tex]$1,000 for stationery (`Stationery` [Dr], `Bank` [Cr]). 2. June 7: Paid $[/tex]2,000 for wages (`Wages` [Dr], `Bank` [Cr]).
3. June 10: Paid [tex]$500 for telephone (`Telephone` [Dr], `Bank` [Cr]). 4. June 14: Paid $[/tex]3,000 for materials (`Material Costs` [Dr], `Bank` [Cr]).
5. June 20: Paid [tex]$600 for insurance (`Insurance` [Dr], `Bank` [Cr]). 6. June 25: Paid $[/tex]150 for a trading license (`Trading License` [Dr], `Bank` [Cr]).
7. June 28: Paid [tex]$800 for water and electricity (`Water and Electricity` [Dr], `Bank` [Cr]). 8. June 30: Paid $[/tex]4,500 for salaries (`Salaries` [Dr], `Bank` [Cr]).
#### Posting Transactions to General Ledger:
1. Bank:
- Dr [tex]$10,000 (June 1, sales) - Dr $[/tex]2,000 (June 5, rent)
- Cr [tex]$1,000 (June 3, stationery) - Cr $[/tex]2,000 (June 7, wages)
- Cr [tex]$500 (June 10, telephone) - Cr $[/tex]3,000 (June 14, materials)
- Cr [tex]$600 (June 20, insurance) - Cr $[/tex]150 (June 25, license)
- Cr [tex]$800 (June 28, water/electricity) - Cr $[/tex]4,500 (June 30, salaries)
2. Current Income (N1):
- Cr [tex]$10,000 (June 1, sales) 3. Rent Income (N2): - Cr $[/tex]2,000 (June 5, rent)
4. Stationery (N6):
- Dr [tex]$1,000 (June 3) 5. Wages (N3): - Dr $[/tex]2,000 (June 7)
6. Telephone (N7):
- Dr [tex]$500 (June 10) 7. Material Costs (N4): - Dr $[/tex]3,000 (June 14)
8. Insurance (N8):
- Dr [tex]$600 (June 20) 9. Trading License (N5): - Dr $[/tex]150 (June 25)
10. Water and Electricity (N9):
- Dr [tex]$800 (June 28) 11. Salaries (N10): - Dr $[/tex]4,500 (June 30)
### Summary:
After posting all transactions to the General Ledger, ensure that the Debit and Credit balances for each account reflect the transactions listed. This completes the process of posting the Cash Receipts Journal and Cash Payments Journal to the General Ledger for Jolene Hairdressers for the month of June.
Feel free to continue with the individual balances and ensure proper reconciliation if any errors occur during postings. Each account should display a balanced and accurate reflection of the financial activities for the month.
### Step-by-Step Solution:
#### Step 1: Open Accounts in the General Ledger
1. Balance Sheet Accounts Section:
- Capital (B1)
- Drawings (B2)
- Equipment (B4)
- Land and Buildings (B3)
- Bank (B5): Initially open it with a balance of 6
2. Nominal Accounts Section:
- Cash Float (B6)
- Current Income (N1): Initially open it with a balance of 2
- Rent Income (N2): Open this account.
- Stationery (N6)
- Wages (N3): Initially open it with a balance of 3.
- Telephone (N7)
- Material Costs (N4): Initially open it with a balance of 3.
- Insurance (N8): Initially open it with a balance of 3.
- Trading License (N5)
- Water and Electricity (N9)
- Salaries (N10)
#### Step 2: Post the Cash Receipts Journal and Cash Payments Journal
Now, let's post the summarized totals from the Cash Receipts Journal (CRJ) and Cash Payments Journal (CPJ) for the month of June into the respective General Ledger accounts.
Assume the following transactions occurred (detailed transactions are typically found in CRJ and CPJ):
From Cash Receipts Journal (CRJ):
1. June 1: Received [tex]$10,000 from sales (`Bank` [Dr], `Current Income` [Cr]). 2. June 5: Received $[/tex]2,000 for rent (`Bank` [Dr], `Rent Income` [Cr]).
From Cash Payments Journal (CPJ):
1. June 3: Paid [tex]$1,000 for stationery (`Stationery` [Dr], `Bank` [Cr]). 2. June 7: Paid $[/tex]2,000 for wages (`Wages` [Dr], `Bank` [Cr]).
3. June 10: Paid [tex]$500 for telephone (`Telephone` [Dr], `Bank` [Cr]). 4. June 14: Paid $[/tex]3,000 for materials (`Material Costs` [Dr], `Bank` [Cr]).
5. June 20: Paid [tex]$600 for insurance (`Insurance` [Dr], `Bank` [Cr]). 6. June 25: Paid $[/tex]150 for a trading license (`Trading License` [Dr], `Bank` [Cr]).
7. June 28: Paid [tex]$800 for water and electricity (`Water and Electricity` [Dr], `Bank` [Cr]). 8. June 30: Paid $[/tex]4,500 for salaries (`Salaries` [Dr], `Bank` [Cr]).
#### Posting Transactions to General Ledger:
1. Bank:
- Dr [tex]$10,000 (June 1, sales) - Dr $[/tex]2,000 (June 5, rent)
- Cr [tex]$1,000 (June 3, stationery) - Cr $[/tex]2,000 (June 7, wages)
- Cr [tex]$500 (June 10, telephone) - Cr $[/tex]3,000 (June 14, materials)
- Cr [tex]$600 (June 20, insurance) - Cr $[/tex]150 (June 25, license)
- Cr [tex]$800 (June 28, water/electricity) - Cr $[/tex]4,500 (June 30, salaries)
2. Current Income (N1):
- Cr [tex]$10,000 (June 1, sales) 3. Rent Income (N2): - Cr $[/tex]2,000 (June 5, rent)
4. Stationery (N6):
- Dr [tex]$1,000 (June 3) 5. Wages (N3): - Dr $[/tex]2,000 (June 7)
6. Telephone (N7):
- Dr [tex]$500 (June 10) 7. Material Costs (N4): - Dr $[/tex]3,000 (June 14)
8. Insurance (N8):
- Dr [tex]$600 (June 20) 9. Trading License (N5): - Dr $[/tex]150 (June 25)
10. Water and Electricity (N9):
- Dr [tex]$800 (June 28) 11. Salaries (N10): - Dr $[/tex]4,500 (June 30)
### Summary:
After posting all transactions to the General Ledger, ensure that the Debit and Credit balances for each account reflect the transactions listed. This completes the process of posting the Cash Receipts Journal and Cash Payments Journal to the General Ledger for Jolene Hairdressers for the month of June.
Feel free to continue with the individual balances and ensure proper reconciliation if any errors occur during postings. Each account should display a balanced and accurate reflection of the financial activities for the month.
