(A) Using the Excel General Journal spreadsheet in this file, record the 2017 tr
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Question
(A) Using the Excel General Journal spreadsheet in this file, record the 2017 transactions listed below AND the ssary year end adjusting journal entries. Label the transactions in numeric sequence corresponding to the numbers below. Each of the transactions below requires a journal entry. Note that there is a debit and credit control total at the top of the general journal so that you can check after each entry to see if you are in balance. 1. Issued an additional 10,000 shares of common stock on January 2. The stock was sold for $80,000, which equals the par value of the stock. 2. Purchased store equipment for $10,000 cash on January 3. 3. Provided services for cash of $35,000 on February 5 4. Provided services on credit for $90,000 on February 10. 5. Received bill and paid utilities of $15,000 on February 15. 6. Paid sales salaries of S30,000 on March 1. 7. Incurred legal fees of $6,000 on April 10, but did not pay for these services. 8. Declared and paid dividends to stockholders of $2,000 on April 30. 9. Collected $25,000 for services to be provided over the coming year on June 30. 10. Paid $72,000 for a three-year insurance policy on July 10 with coverage beginning on August 1. 11. Paid S1,000 for a three-week equipment rental on September 10. 12. Collected $10,000 from the February 10 transaction on October 20. 13. Paid $1,000 of the amount owed for legal fees incurred on April 10 on November 18. 14. Sold land with cost of $100,000 for $120,000 cash on December 1. 2Explanation / Answer
Date Account title & Explanations Debit Credit Amount in $ Jan-02 Cash 80000 Common stock at par 80000 To record the issuance of 10000 common stock at par Jan-03 Equipment 10000 Cash 10000 To record the purchase of store equipment Feb-05 Cash 35000 Service revenue 35000 To record the revenue from services on cash Feb-10 Accounts Receivable 90000 Service revenue 90000 To record the service revenue on credit Feb-15 Utilities expense 15000 Cash 15000 To record the incurrance and payment of utilities expense Mar-01 Salaries expense 30000 Cash 30000 To record the incurrance and payment of salaries expense Apr-10 Legal fees expense 6000 Legal fees payable 6000 To record the incurrance and outstanding legal fees expense Apr-30 Cash Dividend 2000 Cash 2000 To record the declaration and payment of dividends Jun-30 Cash 25000 Unearned revenue 25000 To record the cash receipt against services to be provided in next year Jul-10 Prepaid Insurance 72000 Cash 72000 To record the payment for three year insurance coverage Sep-10 Equipment rental expense 1000 Cash 1000 To record the payment for three week equipment rental Oct-20 Cash 10000 Accounts Receivable 10000 To record the collection from customers/Clients Nov-18 Legal fees payable 1000 Cash 1000 To record the payment against outstanding legal fees Dec-01 Cash 120000 Land 100000 Gain on sale of land 20000 To record the sale of land with profit The adjusting entry Dec-31 Insurance expense 15000 Prepaid Insurance 15000 To record the adjusting entry for insurance expense for 5 months
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