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Pacific Trucking

Pacific Trucking . Opening Entry. Purpose: To record balances to establish accounts at the beginning of a new fiscal period. Accounting Cycle. Transaction Occurs Journal entry. Opening Entry. Date!. ASSETS (DEBIT ACCOUNTS FIRST). LIABILITIES (CREDIT ACCOUNTS).

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Pacific Trucking

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  1. Pacific Trucking

  2. Opening Entry • Purpose: • To record balances to establish accounts at the beginning of a new fiscal period

  3. Accounting Cycle • Transaction Occurs • Journal entry

  4. Opening Entry Date! ASSETS (DEBIT ACCOUNTS FIRST) LIABILITIES (CREDIT ACCOUNTS) OWNER’S EQUITY (Listed last) Brief Explanation!

  5. Transactions Date! Debit Account Credit Account Brief Explanation!

  6. Accounting Cycle • Transaction Occurs • Journal entry • Posting to the ledger  a record of individuals accounts & balances (t-accounts)

  7. ASSETS Cash A/R- W. Caruso A/R- R. Van Loon (OB) 150 (OB) 620 (OB) 3 265 Trucks Supplies Equipment (OB) 2 465 (OB) 55 075 (OB) 22 174

  8. LIABILITIES & OWNER’S EQUITY B. Rissien, Capital Bank Loan A/P- Packham Supply (OB) 18 000 (OB) 3 946 (OB) 2 465 A/P- Dini Bros. (OB) 1 516

  9. Transaction 1: $200 of supplies is purchased from Packham supply to be paid at a later date A/P- Packham Supply Supplies (OB) 2 465 (OB) 3 946 (1) 200 (1) 200

  10. Transaction 2: $500 IS PAID TO Dini Bros. In part payment of the amount owed to them Cash A/P- Dini Bros. (OB) 3 265 (OB) 1 516 (2) 500 (2) 500

  11. Transaction 3: $200 cash is received from R. Van Loon in part payment of his debt Cash A/R- R. Van Loon (OB) 3 265 (2) 500 (OB) 620 (3) 200 (3) 200

  12. Transaction 4: A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed Cash B. Rissien, Capital (OB) 3 265 (2) 500 (OB) 2 465 (3) 200 (4) 400 (4) 400

  13. Transaction 5: A used truck costing $8 000 is purchased from Dini Bros. A cash down payment of $2 500 is made at the time of the purchase and the balance is paid at a later date. A/P- Dini Bros. Cash Trucks (OB) 1 516 (2) 500 (OB) 3 265 (OB) 55 075 (2) 500 (5) 5 500 (3) 200 (5) 8 000 (5) 2 500 (4) 400

  14. Transaction 6: A delivery is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is made but agrees to pay within 60 days. A/R- R. Van Loon B. Rissien, Capital (OB) 2 465 (OB) 620 (3) 200 (4) 400 (6) 350 (6) 350

  15. Transaction 7: One of the lifting machines (part of equipment) breaks down. $650 cash is spent on repairing the machine. Cash B. Rissien, Capital (OB) 2 465 (OB) 3 265 (2) 500 (7) 650 (4) 400 (3) 200 (5) 2 500 (4) 400 (6) 350 (7) 650

  16. Total ALL of the T-ACCOUNTS Cash Supplies (OB) 3 265 A/R- W. Caruso (2) 500 (3) 200 (5) 2 500 (OB) 2 465 (OB) 150 (4) 400 (1) 200 (7) 650 150 2 665 3 865 3 650 215 A/R- R. Van Loon Trucks Equipment (OB) 620 (3) 200 (OB) 55 075 (OB) 22 174 (6) 350 (5) 8 000 22 174 970 200 63 075 770

  17. Liabilities & Owner’s Equity Bank Loan B. Rissien, Capital A/P- Dini Bros. (OB) 18 000 (OB) 1 516 (OB) 2 465 (2) 500 (7) 650 (4) 400 18 000 (5) 5 500 (6) 350 500 7 016 61 037 650 6 516 A/P- Packham Supply 60 387 (OB) 3 946 (1) 200 4 146

  18. Ex. 3 & 5 p. 163-164 (t), p. 85 (w) • Ex. 2 p. 83 (t), p. 34 (w)

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