# LearnHow to Solve P3-6A Solis Company

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### Problem Details for P3-6A Solis Company

This is the trial balance of Solis Company on September 30.

SOLIS COMPANY

Trial Balance September 30, 2014

#### Trial Balance Details

• Cash \$ 19,200
• Accounts Receivable 2,600
• Supplies 2,100
• Equipment 8,000
• Accounts Payable \$ 4,800
• Unearned Service Revenue 1,100
• Common Stock 15,000
• Retained Earnings 11,000
• \$31,900 \$31,900

The October transactions were as follows.

• Oct. 5 Received \$1,300 in cash from customers for accounts receivable due.
• 10 Billed customers for services performed \$5,100.
• 15 Paid employee salaries \$1,200.
• 17 Performed \$600 of services in exchange for cash.
• 20 Paid \$1,900 to creditors for accounts payable due.
• 29 Paid a \$300 cash dividend.
• 31 Paid utilities \$400.

Prepare a general ledger using T-accounts. Enter the opening balances in the ledger accounts as of October 1.

### Step 1 - Put Opening Balances into T-Accounts

The first step to solve this problem is to put the opening balances into T-Accounts. The table below show the opening balance for each item.

### Opening Balances

 Accounts Debit Credit Cash 19200 Accounts Receivable 2600 Supplies 2100 Equipment 8000 Accounts Payable 4800 Unearned Service Revenue 1100 Common Stock 15000 Retained Earnings 11000

### Overview of T-Account Recording

If you're not fully sure how to setup T-Accounts, watch this quick video to get up to speed. Having a solid grasp of this concept is important for the rest of this lesson.

### Step 2 - Record Journal Entries

Now to we have all the data in the the T-Accounts. We need to record the journal entries.

### Journal Entries

 Date Account Debit Credit 5-Oct Cash 1300 Accounts Receivable 1300 10-Oct Accounts Receivable 5100 Service Revenue 5100 15-Oct Salaries 1200 Cash 1200 17-Oct Cash 600 Service Revenue 600 20-Oct Accounts Payable 1900 Cash 1900 29-Oct Dividends 300 Cash 300 31-Oct Utilities Expense 400 Cash 400

### Step 3 - Updating the T-Accounts

The next step is to record the adjusting entries in the T-Account

### Cash T-Account

 Date Debit Date Credit 1-Oct 19200 15-Oct 1200 5-Oct 1300 20-Oct 1900 17-Oct 600 29-Oct 300 31-Oct 400 Bal 17300

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