25,000 to form tno issued 1,000 shares of common stock. 2. Paid $3,645 cash on F
ID: 2394371 • Letter: 2
Question
25,000 to form tno issued 1,000 shares of common stock. 2. Paid $3,645 cash on February 2 for three months' rent for office space. TIP: For convenience, simply record the full amount of the payment as an asset (Prepaid Rent). At the end of the month, this account will be adjusted to its proper balance. 3. Purchased supplies on February 3 for $320 cash. Secory note on February 4, pøyeble in two years, deposited 518,600 m he company's bank account. 5. On February 5, purchased equipment for $4,600 and land for $14,000. 6. Placed an advertisement in the local paper on February 6 for $765 cash. 7. Recorded sales on February 7 totaling $3,900, $1,760 was in cash and the rest on accounts receivable. 8. Collected accounts receivable of $135 from customers on February 8 9. On February 9, repaired one of the computers for $158 cash. 10. Incurred and paid employee wages on Fobruary 28 of $680. TIP: Most repairs involve oosts that do not provide additional future economic benefits Required 1. Prepare the joumal entry for each of the above transactions. (f no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field View transaction list View journal entry worksheet No Transaction General Journal Debit Credit No Transaction Recorded 2Prepaid Rent 3,645 Cash 3,645 Cash Cash 18,600 Notes Payable (long-term) 18,600 Equipment Land 4,600 14,000 Cash 9.400 Advertiaing Expense 765 Cash 785 Cash 1,760 Accounts Receiv escExplanation / Answer
No Transaction General Journal Debit Credit 1 1 Cash $ 25,000 Common Stock $ 25,000 2 2 Prepaid rent $ 3,645 Cash $ 3,645 3 3 Supplies $ 320 Cash $ 320 4 4 Cash $ 18,600 Notes Payable(Long Term) $ 18,600 5 5 Equipment $ 4,600 Land $ 14,000 Cash $ 18,600 6 6 Advertisement Expense $ 765 Cash $ 765 7 7 Cash $ 1,760 Accounts Receivable $ 2,140 Service Revenue $ 3,900 8 8 Cash $ 135 Accounts Receivable $ 135 9 9 Repairs & Maintenance Expense $ 158 Cash $ 158 10 10 Salaries & wages expense $ 680 Cash $ 680 Cash Accounts Receivable Beg. Bal Beg. Bal (1) 25,000 3,645 (2) (7) 2,140 135 (8) (4) 18,600 320 (3) (7) 1,760 18,600 (5) End. Bal 2,005 (8) 135 765 (6) 158 (9) 680 (10) End. Bal 21,327 Supplies Prepaid Rent Beg. Bal Beg. Bal (3) 320 (2) 3,645 End. Bal 320 End. Bal 3,645 Land Equipment Beg. Bal Beg. Bal (5) 14,000 (5) 4,600 End. Bal 14,000 End. Bal 4,600 Notes Payable(Long Term) Common Stock Beg. Bal Beg. Bal 18,600 (4) 25,000 (1) 18,600 End. Bal 25,000 End. Bal Service Revenue Advertisement Expense Beg. Bal Beg. Bal 3,900 (7) (6) 765 3,900 End. Bal End. Bal 765 Salaries and Wages Expense Repairs & Maintenance Expense Beg. Bal Beg. Bal (10) 680 (9) 158 End. Bal 680 End. Bal 158 BARB'S BOOK BUSINESS Unadjusted Trial Balance Account Name Debit Credit Cash 21,327 Accounts Receivable 2,005 Supplies 320 Prepaid Rent 3,645 Land 14,000 Equipment 4,600 Notes Payable (Long Term) 18,600 Common Stock 25,000 Service Revenue 3,900 Advertising Expense 765 Salaries and Wages Expense 680 Repairs & Maintenance Expense 158 Total $ 47,500 $ 47,500
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