Woodscross LLC had the following events during the month of July: 1. Received $4

Question

Woodscross LLC had the following events during the month of July:

1. Received $40,000 from investors for contributed capital
2. Borrowed $15,550 from the bank
3. Paid $4,100 for rent
4. Made sales on account for $12,500
5. Made cash sales to customers totaling $29,700
6. Repaid part of bank loan for $6,000
7. Purchased new equipment for $5,000
8. Paid $13,000 for wages
9. Paid $1,900 for utilities

Prepare the nine journal entries. Each entry will have a debit and credit entry. Indicate word debit followed by the Account title (name); Credit followed by the account title (name).

Explanation / Answer

1. Received $40,000 from investors for contributed capital Debit: Cash 40,000 Credit: Owners equity 40,000 2. Borrowed $15,550 from the bank Debit: Cash 15,550 Credit: Note payable 15,550 3. Paid $4,100 for rent Debit: Rent expense 4,100 Credit: Cash 4,100 4. Made sales on account for $12,500 Debit: Accounts receivable 12,500 Credit: Sales revenue 12,500 5. Made cash sales to customers totaling $29,700 Debit: Cash 29,700 Credit: Sales revenue 29,700 6. Repaid part of bank loan for $6,000 Debit: Note payable 6,000 Credit: Cash 6,000 7. Purchased new equipment for $5,000 Debit: Equipment 5,000 Credit: Cash 5,000 8. Paid $13,000 for wages Debit: Wages expense 13,000 Credit: Cash 13,000 9. Paid $1,900 for utilities Debit: Utilities expense Credit: Cash 1,900

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