Question 2: Journal Entries (13 marks) Mr. Hollywood opened a health food consul

Question

Question 2: Journal Entries (13 marks) Mr. Hollywood opened a health food consulting business on October 1. 2017. During the month. the following transactions occurred: a. Mr. Hollywood transferred $5,000 from a personal bank account to an account to be used by the business. b. Paid advertising expense, $1,800 c. A client called to book Mr. Hollywood's time in November. Mr. Hollywood gave a quote of $1,000. d. Mr. Hollywood completed a review of a client's dictary intake for one week and charged the client $500. The client has not yet paid. e. Paid cash for miscellaneous items $50. f. Paid telephone bill for the month.$1S0 g. Withdrew cash for personal use, $2,000. Journalize the above transactions directly in the following accounts Cash: Accounts Receivable: Mr. Hollywood, Capital: Mr. Hollywood. Withdrawals; Advertising Expense, Miscellaneous Expense: Fees Earned: Telephone Expense. Debit (DR) Credit (CR)

Explanation / Answer

Account Titles Debit(DR) Credit(CR) a Cash $5,000 Mr. Hollywood, Capital $5,000 b Advertising Expense $1,800 Cash $1,800 c No entry d Accounts Recevable $500 Fees Earned $500 e Miscellaneous Expense $50 Cash $50 f Telephone Expense $180 Cash $180 g Mr. Hollywood, Withdrawals $2,000 Cash $2,000

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