Required: prepare Journal entries to record the transaction. Please full calcula

Question

Required: prepare Journal entries to record the transaction.

Please full calculation and explanation.

Problem 2-4A Preparing general journal entries LO3,5 Factor Accounting and completed these activities Abe Factor opened a new accounting pract during March 2017: 000 in cash and office equipment that had a fair value of $12.000 1 Prepai d $4,000 cash for three months rent for an office t purchases of used office equipment for $6,000 and office supplies for $1,200 Completed work for a client and immediately received $6.200 cash. q Completed a $4,000 project for a client, who will pay within 30 days. Le 11 Paid the account payable created on March 3epu 15 Paid $3,000 c ash for the annual premium on an insurance policy. O as partial payment for the work completed on March q 22 23 27 30 31 Placed an order with a supplier for $4,800 of supplies to be delivered April 7. They must be paid for within 15 days of being received. Completed work for another client for $2,850 on credit. Abe Factor withdrew $3,600 cash from the business to pay some personal expenses. Purchased $650 of additional office supplies on credit Paid $860 for the month's utility bill.

Explanation / Answer

Journal Entries

Date

Accounts titles and Explanations

Debit

Credit

1-Mar

Cash

$ 50,000.00

Equipment

$ 12,000.00

                 Abe factor' capital

$ 62,000.00

(capital introduced)

1-Mar

Prepaid rent

$    9,000.00

          Cash

$    9,000.00

(prepaid Rent paid)

3-Mar

Office equipment

$    6,000.00

Supplies

$    1,200.00

         Accounts payable

$    7,200.00

(Equipment and supplies purchased)

5-Mar

Cash

$    6,200.00

       Service revenue

$    6,200.00

(Service revenue earned)

9-Mar

Accounts Receivable

$    4,000.00

            Service Revenue

$    4,000.00

(Service completed for a client)

11-Mar

Accounts payable

$    7,200.00

            cash

$    7,200.00

(payment for equipment and supplies made)

15-Mar

Prepaid Insurance

$    3,000.00

            Cash

$    3,000.00

(Insurance premium paid)

20-Mar

Cash

$    1,500.00

           Accounts Receivable

$    1,500.00

(payment received from receivables)

22-Mar

No entry

23-Mar

Accounts Receivable

$    2,850.00

             Service Revenue

$    2,850.00

(Service completed for a client)

27-Mar

Abe factor' Withdrawals

$    3,600.00

              Cash

$    3,600.00

(drawings by proprietor)

30-Mar

Office Supplies

$        650.00

              Accounts Payable

$        650.00

(supplies purchased on credit)

31-Mar

Utilities expense

$        860.00

            cash

$        860.00

(Utility expense paid)

There will be no entry on March 22 because Liability for payment will arise only when goods are received. Until delivery there is no obligation on the part of Abe Factor.

There seems to be no entries in which any calculations are required.

Please specify in the comment section if you need any explanation with any of the entries made above.

Journal Entries

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