The General Journal 3 and the General Ledger （一般期刊3和总帐）.pdf

The General Journal 3 and the General Ledger DEMONSTRATION PROBLEM G. Bell, a fitness enthusiast, buys an existing exercise center, Body Firm. The following chart of accounts now applies: Assets Revenue 111 Cash 411 Income from Services 124 Land 126 Building Expenses 128 Equipment 511 Wages Expense 512 Utilities Expense Liabilities 513 Advertising Expense 221 Accounts Payable 514 Repair Expense 223 Mortgage Payable 519 Miscellaneous Expense Owners Equity 311 G. Bell, Capital 312 G. Bell, Drawing Apr. 16 Bell deposited $100,000 in a bank account for the purpose of buying Body Firm. 17 Bought the assets of Body Firm for a total price of $188,000. The assets include equipment, $28,000; building, $96,000; and land, $64,000. Made a down payment of $89,000 and signed a mortgage note for the remainder. 17 Bought additional equipment from Fitness Supply Co. on account for $3,550, pay- ing $710 down, with balance due in thirty days. 29 Celebrated the grand opening of Body Firm. Advertising expenses were paid in cash for the following: Advertising in newspaper $314 Announcements mailed to local residents 85 Postage 125 Balloons, ribbons, flowers 126 Food and refreshments