1. Issued stock to investors for $13,300 in cash. 2. Purchased used car for $10, 100 cash for use in business. 3. Purchased supplies on account for $280. 4. Billed customers $3,930 for services performed. Paid $150 cash for advertising at the start of the business. 6. Received $1,610 cash from customers billed in transaction (4). 7. Paid creditor $310 cash on account. 8. Paid dividends of $550 cash to stockholders. 5.
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The different transactions in the business affects two or more accounts of the business, with one account is debited then other must be credited.
The assets have the debit balance, the liabilities and shareholders' equity have the credit balance.
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- Prepare journal entries to record the following transactions that occurred in March: A. on first day of the month, purchased building for cash, $75,000 B. on fourth day of month, purchased inventory, on account, $6,875 C. on eleventh day of month, billed customer for services provided, $8,390 D. on nineteenth day of month, paid current month utility bill, $2,000 E. on last day of month, paid suppliers for previous purchases, $2,850Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company had the following transactions. 1. Issue 10,000 shares of common stock in exchange for $32,000 in cash. 2. Purchase land for $19,000. A note payable is signed for the full amount. 3. Purchase storage container equipment for $8,000 cash. 4. Hire three employees for $2,000 per month. 5. Receive cash of $12,000 in rental fees for the current month. 6. Purchase office supplies for $2,000 on account. 7. Pay employees $6,000 for the first month’s salaries. Required: For each transaction, describe the dual effect on the accounting equation. For example, in the first transaction, (1) assets increase and (2) stockholders’ equity increases.Mason's Restaurant and Catering had the following transactions during the month of May. May 1 Mason contributed $45,000 cash in exchange for common stock. 5 Paid monthly rent on the restaurant equipment, $1,650. 12 Purchased office supplies on account, $1,500. 15 Borrowed $25,000 from the bank for business use. 26 Paid $30,000 cash for a delivery van. 28 Paid $1,500 on account. 29 The business received $1,600 for catering services for a wedding on June 11. 30 Revenues earned during the month included $20,500 cash and $14,500 on account. 31 Received the May utility bill for $1,000. The amount is due on June 10 and will be paid on that date. 31 Paid cash dividends of $4,000. The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Delivery Van; Accounts Payable; Utilities Payable; Unearned Revenue; Notes Payable; Common Stock; Dividends; Service Revenue; Equipment Rent…
- Mason's Restaurant and Catering had the following transactions during the month of May. May 1 Mason contributed $45,000 cash in exchange for common stock. 5 Paid monthly rent on the restaurant equipment, $1,650. 12 Purchased office supplies on account, $1,500. 15 Borrowed $25,000 from the bank for business use. 26 Paid $30,000 cash for a delivery van. 28 Paid $1,500 on account. 29 The business received $1,600 for catering services for a wedding on June 11. 30 Revenues earned during the month included $20,500 cash and $14,500 on account. 31 Received the May utility bill for $1,000. The amount is due on June 10 and will be paid on that date. 31 Paid cash dividends of $4,000. The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Delivery Van; Accounts Payable; Utilities Payable; Unearned Revenue; Notes Payable; Common Stock; Dividends; Service Revenue; Equipment Rent…Julia Dumars is a licensed CPA. During the first month of operations of her business, Sheffield Corp, the following events and transactions occurred. Stockholders invested $20,200 cash in exchange for common stock. Hired a secretary-receptionist at a salary of $2,500 per month. 3 Purchased $1,800 of supplies on account from Vincent Supply Company. 7 Paid office rent of $880 cash for the month. 11 Completed a tax assignment and billed client $3,000 for services performed. Received $3,300 advance on a management consulting engagement. Received cash of $1,100 for services performed for Orville Co. Paid secretary-receptionist $2,500 salary for the month. Paid 40% of balance due Vincent Supply Company. May 1 2 12 17 31 31 Julia uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No.209 Unearned Service Revenue, No. 311 Common Stock, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.Javier Jimenez operates a delivery service. During the month of April, the firm had the following transactions. April 1 Issued a check in the amount of $4,800 to pay the monthly rent for the next 3 months. April 2 Javier made an additional investment of cash in amount of $11,200. April 4 Performed services for $715 in cash. April 6 Sent a check in the amount of $410 to the utility company to pay the monthly bill. April 7 Purchased supplies in the amount of $870 on credit. Prepare journal entries to record the above transactions. View transaction list Journal entry worksheet 1 2 3 Date April 01 Issued a check in the amount of $4,800 to pay the monthly rent for the next 3 months. Note: Enter debits before credits. 5 General Journal Debit Credit >
- Below are the transactions for Salukis Car Cleaning for June, the first month of operations. June 1 Obtain a loan of $70,000 from the bank by signing a note. June 2 Issue common stock in exchange for cash of $40,000. June 7 Purchase car wash equipment for $75,000 cash. June 10 Purchase cleaning supplies of $8,000 on account. June 12 Wash 500 cars for $10 each. All customers pay cash. June 16 Pay employees $900 for work performed. June 19 Pay for advertising in a local newspaper, costing $500. June 23 Wash 600 cars for $10 each on account. June 29 Pay employees $950 for work performed. June 30 A utility bill of $1,400 for the current month is paid. June 30 Pay dividends of $600 to stockholders. Required: 1. Record each transaction. 2. Post each transaction to the appropriate T-accounts. 3. Calculate the balance of each account. 4. Prepare a trial balance for June. Salukis uses the following accounts: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Notes Payable, Common…Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company has the following transactions. 1. January 1 Issue 10,000 shares of common stock in exchange for $42,000 in cash. 2. January 5 Purchase land for $24,000. A note payable is signed for the full amount. 3. January 9 Purchase storage container equipment for $9,000 cash. 4. January 12 Hire three employees for $3,000 per month. 5. January 18 Receive cash of $13,000 in rental fees for the current month. 6. January 23 Purchase office supplies for $3,000 on account. 7. January 31 Pay employees $9,000 for the first month’s salaries. Required: 1. Record each transaction. Green Wave uses the following accounts: Cash, Supplies, Land, Equipment, Common Stock, Accounts Payable, Notes Payable, Service Revenue, and Salaries Expense. 2. Post each transaction to T-accounts and compute the ending balance of each account. Since this is the first month of operations, all T-accounts have a…The following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $3.990 from a local bank on a note due in six months. b. Received $4,680 cash from investors and issued common stock to them. C. Purchased $1,100 in equipment, paying $250 cash and promising the rest on a note due in one year. d. Paid $350 cash for supplies. e. Bought and received $750 of supplies on account. Required: Post the effects to the appropriate T-accounts and determine ending account balances. Show a beginning balance of zero.
- The following transactions occur for Badger Biking Company during the month of June: 1. Purchase bicycle inventory for $80,000 on account. 2. Sell inventory costing $40,000 for $65,000 in cash. 3. Provide repair services to customers on account for $50,000. 4. Receive cash of $42,000 from customers in (c) above. 5. Purchase bike repair equipment by signing a note with the bank for $35,000. 6. Pay utilities of $5,000 for the current month. Analyze each transaction and show the effects of each on the accounting equation. Note: Decreases to account classifications should be indicated by a minus sign. Transaction (1) (1) (2) (2) (3) (3) (4) (4) (5) (5) (6) (6) Assets 11 $ 11 11 = $ 50,000 = = 42,000 = $ (42,000) = $ 35,000 = = (5,000) = = II Liabilities $ 35,000 + + + + + + + + + + + Stockholders' Equity $ 50,000 $ (5,000)The following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $4,390 from a local bank on a note due in six months. b. Received $5,080 cash from investors and issued common stock to them. c. Purchased $1,900 in equipment, paying $650 cash and promising the rest on a note due in one year. d. Paid $750 cash for supplies. e. Bought and received $1,150 of supplies on account. Required: Post the effects to the appropriate T-accounts and determine ending account balances. Show a beginni Debit Beginning Balance Ending Balance Debit F Cash Equipment Credit Credit Debit Beginning Balance Ending Balance Debit Supplies Accounts PayableGeorge Smyth opened a computer repair business on Apr. 1, 20--. During the first month of operations, the firm had the following transactions. Apr. 1 George Smyth invested $30,000 cash in the business. 2 Paid rent for April, $2,100. 8 Bought equipment for $12,000 and issued a check for $3,000 as a down payment. 12 Performed services for $3,200 in cash, and $1,200 on credit. 19 Paid electric bill, $225. 25 Received $900 on account from credit customers. Required: Record these transactions on page 1 of the general journal. Omit explanations. If an amount box does not require, leave it blank. Page: 1 DATE DESCRIPTION POST.REF. DEBIT CREDIT 1 Apr. 1 Cash 101 fill in the blank f9fb70ff9f95044_2 fill in the blank f9fb70ff9f95044_3 1 2 George Smyth, Capital 311 fill in the blank f9fb70ff9f95044_5 fill in the blank f9fb70ff9f95044_6 2 3 Apr. 2 Rent Expense 521 fill in the blank f9fb70ff9f95044_8 fill in the blank f9fb70ff9f95044_9 3 4 Cash 101…