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The following information applies to the questions displayed below.] On January

ID: 2396330 • Letter: T

Question

The following information applies to the questions displayed below.]
  
On January 1, 2018, the general ledger of Dynamite Fireworks includes the following account balances:
  

  
During January 2018, the following transactions occur:
  
January 2. Purchase rental space for one year in advance, $8,700 ($725/month).
January 9. Purchase additional supplies on account, $4,400.
January 13. Provide services to customers on account, $26,400.
January 17. Receive cash in advance from customers for services to be provided in the future, $4,600.
January 20. Pay cash for salaries, $12,400.
January 22. Receive cash on accounts receivable, $25,000.
January 29. Pay cash on accounts payable, $4,900.

Journal entry worksheet

Purchase rental space for one year in advance, $8,700 ($725/month).

Note: Enter debits before credits.

  Accounts Debit Credit   Cash $ 24,700   Accounts Receivable 6,100   Supplies 4,000   Land 59,000   Accounts Payable 4,100   Common Stock 74,000   Retained Earning 15,700        Totals $ 93,800 $ 93,800

Explanation / Answer

(Figure in $) Accounts Debit Credit Cash       24,700 Accounts Receivable         6,100 Supplies         4,000 Land       59,000 Accounts Payable       4,100 Common Stock     74,000 Retained Earnings     15,700 Totals      93,800 93,800 Date Accounts Titles & explanation Debit Credit 2-Jan Prepaid Rent expenses         8,700 Cash 8700 9-Jan Supplies         4,400 Accounts Receivable       4,400 13-Jan Accounts Receiavble       26,400 Service Revenue     26,400 17-Jan Cash         4,600 Unearned Service Revenue       4,600 20-Jan Salaries       12,400 Cash     12,400 22-Jan Cash       25,000 Accounts Receivable     25,000 29-Jan Accounts Payable         4,900 Cash       4,900 Note: As per the given information, we can do this only