Geo Inc. had the following account balances on January 1, Year 2: $ 737 2,600 2,

Question

Geo Inc. had the following account balances on January 1, Year 2: $ 737 2,600 2,600 25,000 3,700 5,000 4,911 nse5,100 1 ivable Cash Common S uipment Note Payabl Retained Earnings Prepare journal entries for each of the following January activities, and post results to the relevant T accounts. Compute the ending balance of each T-account. Beginning balances have been entered. (If no en field is required for a transaction/event, select "No Journal Entry Required" in the first account A. Paid $737 on account for utilities that were used during December Year 1 Purchased $503 of supplies for cash. Signed a rental agreement for office space and paid $6.700 in advance for six months of rent beginning February 1, Year 2 Purchased $19,500 of new equipment, signing a promissory note. E. Provided $34,000 of services. $16,500 was received in cash and $17.500 was provided on credit. F. Paid workers $8,000 for work done in January. View transaction lst

Explanation / Answer

Journal Entry Date Particulars Dr. Amt. Cr. Amt. A. Accounts Payable          737.00    Cash          737.00 (To record the utillities paid of last year) B. Supplies          503.00    Cash          503.00 (To record the supplies purchased) C. Prepaid Rent      6,700.00    Cash      6,700.00 (To record the rent paid in advance) D. Equipment    19,500.00    Notes Payable    19,500.00 (To record the purcahse of equipment) E. Cash    16,500.00 Accounts Receivable    17,500.00    Service Revenue    34,000.00 (To record the service revenue) F. Salaries & Wages Expense      8,000.00    Cash      8,000.00 (To record the wages paid) Accounts Payable Accounts Receivable Beg. Bal.          737.00 Beg. Bal.      2,600.00 A.          737.00 E.    17,500.00 End. Bal.                   -   End. Bal.    20,100.00 Cash Common Stock Beg. Bal.      2,600.00          737.00 A. Beg. Bal.    25,000.00 E.    16,500.00          503.00 B.      6,700.00 C. End. Bal.    25,000.00      8,000.00 F. End. Bal.      3,160.00 Equipment Notes Payable Beg. Bal.      3,700.00 Beg. Bal.      5,000.00 D.    19,500.00    19,500.00 D. End. Bal.    23,200.00 End. Bal.    24,500.00 Retained Earnings Salaries &Wages Expense Beg. Bal.      4,911.00 Beg. Bal.      5,100.00 F.      8,000.00 End. Bal.      4,911.00 End. Bal.    13,100.00 Supplies Prepaid Rent Beg. Bal.      2,020.00 Beg. Bal.                   -   B.          503.00 C.      6,700.00 End. Bal.      2,523.00 End. Bal.      6,700.00 Service Revenue Beg. Bal.                   -      34,000.00 E. End. Bal.    34,000.00

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