Journalize the July transactions. Thank you! July 1 Purchased equipment, paying
ID: 2576933 • Letter: J
Question
Journalize the July transactions. Thank you!
July 1 Purchased equipment, paying $3,200 cash and signing a 2-year note payable for $16,000. The equipment has a 4-year useful life. The note has a 6% interest rate which is payable on the first day of each following montlh 2 Issued 16,000 shares of common stock for $40,000 cash. 3 Paid $3,000 cash for a 12-month insurance policy effective July 1 3 6 9 10 13 14 16 18 20 20 23 27 Paid the first 2 (July and August 2017) months' rent for an annual lease of office space for $3,200 per month Paid $3,000 for supplies Visited client offices and agreed on the terms of a consulting project. Bridgeport will bill the client, Connor Productions, on the 20th of each month for services performed Collected $960 cash on account from Milani Brothers. This client was billed in June when Bridgeport performed the service Performed services for Fitzgerald Enterprises. This client paid $900 in advance last month. All services relating to this payment are now completed Paid $320 cash for a utility bill. This related to June utilities that were accrued at the end of June Met with a new client, Thunder Bay Technologies. Received $9,600 cash in advance for future services to be performed Paid semi-monthly salaries for 8,800 Performed services worth $22,400 on account and billed customers Received a bill for $1,800 for advertising services received during July. The amount is not due until August 15 Performed the first phase of the project for Thunder Bay Technologies. Recognized $8,000 of revenue from the cash advance received July 16 Received $12,000 cash from customers billed on July 20Explanation / Answer
Journal Entries Date Accounting titles & Explanations Debit Credit 1-Jul Equipment 19,200 cash 3,200 notes payable 16,000 2-Jul Cash 40,000 common stock 40,000 3-Jul prepaid insurance 3,000 cash 3,000 3-Jul prepaid rent 3,200 cash 3,200 6-Jul Supplies 3,000 cash 3,000 9-Jul No entry 10-Jul cash 960 account receivable 960 13-Jul unearned service revenue 900 service revenue 900 14-Jul utility payable/accounts payable 320 cash 320 16-Jul cash 9,600 unearned service revenue 9,600 18-Jul Salaries expense 8,800 cash 8,800 20-Jul Accounts receivable 22,400 service revenue 22,400 20-Jul Advertising expense 1,800 Accounts payable 1,800 23-Jul unearned service revenue 8,000 service revenue 8,000 27-Jul cash 12,000 accounts receivable 12,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.