Create a general journel entry using the following information: During January 2

Question

Create a general journel entry using the following information:

During January 2018, the following transactions occur:

January 2 Purchase rental space for one year in advance, $6,600 ($550/month). January 9 Purchase additional supplies on account, $3,700. January 13 Provide services to customers on account, $25,700. January 17 Receive cash in advance from customers for services to be provided in the future, $3,900. January 20 Pay cash for salaries, $11,700. January 22 Receive cash on accounts receivable, $24,300. January 29 Pay cash on accounts payable, $4,200.

Explanation / Answer

Date Particulars Dr. Amount Cr. Amount 2nd January, 2018 Prepaid Rent…..dr $6,000     To Cash 6,000 (Being rental space purchased for 1 yr) 9th January, 2018 Supplies……dr $3,700      To Accounts Payable $3,700 (Being purchase of additional supplies on account) 13th January, 2018 Accounts Receivable $25,700      To Service Revenue $25,700 (Being services provided on account) 17th January, 2018 Cash……….dr $3,900      To Unearned services revenue $3,900 (To record payment of cash for salaries) 20th January, 2018 Salaries expenses….dr $11,700      To Cash $11,700 (Being cash paid for salaries) 22nd January, 2018 Cash………dr $24,800      To Accounts Receivables $24,800 (Being record of cash received from accounts receivable) 29th January, 2018 Accounts Payable….dr $4,200      To Cash $4,200 (Being cash payment to accounts Payable)

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