Chapter 2, Problem 59APSA

Problem 2-59A Journalizing Transactions

Monroe Company rents and sells electronic equipment. During September, Monroe engaged in the transactions described below.

Sept. 5 Purchased a Chevrolet truck for $38,900 cash.

8 Purchased inventory for $4200 on account.

10 Purchased $1,250 of office supplies on credit.

11 Rented sound equipment to a traveling stage play for $13,600. The producer of the play paid for the service at the time it was provided.

Sept 12 Rented sound equipment and lights to a local student organization for a school dance for $2,400. The student organization will pay for services within 30 days.

18 Paid employee wages of $4,750. What have been earned during September.

22 Collected the receivable from the September 12 transaction.

23 Borrowed $20000 cash from a bank on a 3-year note payable.

28 Issued common stock to new stockholders for $35,000.

30 Paid a $3,250 cash dividend to stock-holders

Required:

Prepare a journal entry for each transaction.