Journalize a. On January 1, 2015, a payment in cash for $12,000 is made for prep

Question

Journalize

a. On January 1, 2015, a payment in cash for $12,000 is made for prepaying rent for the entire year 2015.

b. On January 4, 2015, accounting services are performed and payment is received in cash for the amount of $1,900.

c. On January 9, 2015, a payment in cash for advertising is made in the amount of $850.

d. On January 10, 2015, office supplies are purchased in the amount of $75 with cash.

e. On January 14, 2015, accounting services are performed and payment is received in cash for the amount of $2,725.

f. On January 20, 2015, the telephone bill for the amount of $660 is received and paid with cash.

g. On January 20, 2015, the utilities bill for $2,925 is received. The bill won't be paid until it is due on February 15, 2015

h. On January 27, 2015, accounting services are performed on account in the amount of $3,750.

i. On January 28, 2015, a payment in cash for $1,500 is made for a bill from an advertising agency.

3) Post the general journal entries from the journal to the corresponding general ledger accounts, paying particular attention to the posting being made (debit or credit). Use the Post Ref. column to ensure that each line item of the journal entries is posted correctly to each general ledger account.

Explanation / Answer

SOLUTION:

GENERAL JOURNAL

Note: when the utility expense will be paid in February we will pass the following journal entry:-

Accounts payable A/C. Debit. 2925

Cash A/C. Credit. 2925

GENERAL LEDGER

CASH ACCOUNT.   

PREPAID RENT ACCOUNT

SERVICE REVENUE ACCOUNT

TELEPHONE EXPENSE ACCOUNT

UTILITY EXPENSE ACCOUNT

ADVERTISING EXPENSE ACCOUNT

OFFICE SUPPLIES ACCOUNT

ACCOUNTS PAYABLE ACCOUNT

Date Particulars post ref. Amount($) Debit Amount($) Credit 2015 Jan1 Prepaid rent A/C 12000 Cash A/C 12000 (Being rent paid for the entire year) Jan4 Cash A/C 1900 Service Revenue A/C 1900 (Being accounting services rendered) Jan9 Advertising expense A/C 850 Cash A/C 850 (Being advertising expense paid) Jan10 Office supplies A/C 75 Cash A/C 75 (Being office supplies purchased) Jan14 Cash A/C 2725 Service Revenue A/C 2725 (Being services rendered) Jan20 Telephone expense A/C 660 Cash A/C 660 (Being telephone bill paid) Jan20 Utility expense A/C 2925 Accounts payable A/c 2925 (Being utility bill received) Jan27 Cash A/C 3750 Service Revenue A/C 3750 (Being Accounting services rendered) Jan28 Advertising expense A/C 1500 Cash A/C 1500 (Being advertising expense paid)

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.