Issued Check No. 868 for $8,200 to pay Blue Blazer Realty for two month\'s worth
ID: 2521062 • Letter: I
Question
Issued Check No. 868 for $8,200 to pay Blue Blazer Realty for two month's worth of rent in advance.
1
Obtained a loan of $48,000 from MRMC Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2018 and the principal of the loan is to be repaid on June 1, 2023.
2
Paid the full amount owing to Addax Sports, Check No. 869.
2
Issued Check No. 870 to Office Supplies Warehouse for the purchase of $580 worth of office supplies.
4
Made payment of $840 to State Power for 3 months of electricity up to and including May 31, Check No. 871.
4
Paid sales staff wages of $1,879 for the week up to and including yesterday, Check No. 872. Note that $1,135 of this payment relates to the wages expense incurred during the last week of May.
5
Jump Around paid the full amount owing on their account.
(Q=310-110-5.AcctsRec5_week1)
(Q=320-100.Cash_week1)
GENERAL LEDGER
Account: Cash
Account No. 100
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
74,032 DR
Jun
Jun
Jun
(Q=320-110.AcctsRecControl_week1)
Account: ARC - Accounts Receivable Control
Account No. 110
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
33,880 DR
Jun
Jun
Jun
(Q=320-130.StoreSupplies_week1)
Account: Office Supplies
Account No. 130
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
2,389 DR
Jun
Jun
Jun
(Q=320-140.PrepaidRent_week1)
Account: Prepaid Rent
Account No. 140
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
0
Jun
Jun
Jun
(Q=320-210.AcctsPayControl_week1)
Account: APC - Accounts Payable Control
Account No. 210
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
44,436 CR
Jun
Jun
Jun
(Q=320-220.WagesPayable_week1)
Account: Wages Payable
Account No. 220
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
1,135 CR
Jun
Jun
Jun
(Q=320-221.ElectricityPayable_week1)
Account: Electricity Payable
Account No. 221
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
915 CR
Jun
Jun
Jun
(Q=320-250.LoanPayable_week1)
Account: Bank Loan Payable
Account No. 250
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
0
Jun
Jun
Jun
(Q=320-400.SalesRevenue_week1)
Account: Sales Revenue
Account No. 400
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
0
Jun
Jun
Jun
(Q=320-402.SalesDisc_week1)
Account: Sales Discounts
Account No. 402
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
0
Jun
Jun
Jun
(Q=320-500.CostOfSales_week1)
Account: Cost of Goods Sold
Account No. 500
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
0
Jun
Jun
Jun
(Q=320-516.WagesExpense_week1)
Account: Wages Expense
Account No. 516
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
0
Jun
Jun
Jun
(Q=320-541.ElectricityExpense_week1)
Account: Electricity Expense
Account No. 541
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
0
Jun
Jun
Jun
(Q=320-544.SuppliesExpense_week1)
Account: Office Supplies Expense
Account No. 544
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
0
Jun
Jun
Jun
Issued Check No. 868 for $8,200 to pay Blue Blazer Realty for two month's worth of rent in advance.
1
Obtained a loan of $48,000 from MRMC Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2018 and the principal of the loan is to be repaid on June 1, 2023.
2
Paid the full amount owing to Addax Sports, Check No. 869.
2
Issued Check No. 870 to Office Supplies Warehouse for the purchase of $580 worth of office supplies.
4
Made payment of $840 to State Power for 3 months of electricity up to and including May 31, Check No. 871.
4
Paid sales staff wages of $1,879 for the week up to and including yesterday, Check No. 872. Note that $1,135 of this payment relates to the wages expense incurred during the last week of May.
5
Jump Around paid the full amount owing on their account.
Explanation / Answer
Journal Entries Date Account Title and explanation Debit Credit Issued Check No. 868 for $8,200 to pay Blue Blazer Realty for two month's worth of rent in advance. Advance Rent $ 8,200 To Cash $ 8,200 (To Record the payment of advance rent) 1 Cash $ 48,000 To Loan from MRMC Bank $ 48,000 (To Record the reciept of the loan) Addax Sports XXX 2 To Cash XXX Office Supplies $ 580 2 To Cash $ 580 (To Record the office supplies) Electricity Expenses $ 840 4 To Cash $ 840 (To Record the Electricity Expenses) 4 wages $ 1,879 Oustanding wages $ 1,135 To Cash $ 3,014 (To Record the payment of wages) 5 "No Journal entry"
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