(8 points) Using the general journal below, prepare journal entries for the foll
ID: 2349076 • Letter: #
Question
(8 points) Using the general journal below, prepare journal entries for the following transactions (you may omit the descriptions): A. Received $75,000 cash from the issuance of common stock. B. Purchased supplies on account for $2,500. C. Paid $7,500 for office equipment. D. Billed client $12,000 for services rendered. E. Purchased land and a building for $15,000 and $90,000, respectively. Paid $30,000 cash and signed a note for the remaining balance. F. Paid the balance on account from the purchase recorded in B above. G. Received payment on account for the services rendered in D above. H. Made a payment on the note for the land and building: $20,000 in principal and $1,500 interest. Hint: The principal portion of the payment reduces the note balance. A. Received $75,000 cash from the issuance of common stock. B. Purchased supplies on account for $2,500. C. Paid $7,500 for office equipment. D. Billed client $12,000 for services rendered. E. Purchased land and a building for $15,000 and $90,000, respectively. Paid $30,000 cash and signed a note for the remaining balance. F. Paid the balance on account from the purchase recorded in B above. G. Received payment on account for the services rendered in D above. H. Made a payment on the note for the land and building: $20,000 in principal and $1,500 interest. Hint: The principal portion of the payment reduces the note balance.Explanation / Answer
A. Debit: Cash 75,000 Credit: Common stock 75,000 b. Debit: supplies 2500 Credit: Accounts payable 2500 c. Debit: office equipment 7500 credit: Cash 7500 d. Debit: Accounts receivable 12,000 Credit: Service Revenue 12,000 e. Debit: Land 15,000 Dedit: Building 90,000 Credit: cash 30,000 Credit: Note payable 75,000 f. Debit: Accounts payable 2500 Credit: Cash 2500 g. Debit: Cash 12,000 Credit: Accounts receivable 12,000 h. Debit: Note payable 20,000 Debit: Interest expense 1,500 Credit: 31,500
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