The following transactions occurred for London Engineering: O (Click the icon to

Question

The following transactions occurred for London Engineering: O (Click the icon to view the transactions.) Journalize the transactions of London Engineering. Include an explanation with each journal entry. Use the following accounts: Cash; Accounts Receivable: Office Supplies; Equipment; Accounts Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Utilities Expense. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) More Info July 2: Received $14,000 contribution from Bill London in exchange for common stock. Date Accounts and Explanation Debit Jul. 2 Credit Jul. 2 Received $14,000 contribution from Bill London in exchange for common stock. 4 Paid utilities expense of $370. 5 Purchased equipment on account, $1,700. 10 Performed services for a client on account, $3,500. 12 Borrowed $7,200 cash, signing a notes payable. 19 Cash dividends of $600 were paid to stockholders. 21 Purchased office supplies for $830 and paid cash. 27 Paid the liability from July 5. July 4: Paid utilities expense of $370. Date Accounts and Explanation Jul. 4 Debit Credit Print Done

Explanation / Answer

Date

Particulars

Debit

Credit

2-Jul

Cash

$14,000.00

Commonstock

$14,000.00

(to record issuance of cash in exchange of common stock)

Cash is asset so increased and Debited and comon stock is part of equity hence credited.

4-Jul

Utilities

$370.00

Cash

$370.00

(To record the payment of utility bill)

Utilities is expense so increased by $370 and hence debited

Cash is paid for utilities so cash is decreased hence credited wit $370

5-Jul

Equipment

$1,700.00

Accounts Payable

$1,700.00

(To record Credit purchase of equipment)

Equipment is asset and hence increased by $1700 so debited

Accounts payable is liability and increased by $1700 hence credited

10-Jul

Accounts receivable

$3,500.00

Service revenue

$3,500.00

(to record the service revenue rendered on account)

Acc recevable is asset and increased by $3500 hence debited

Service rendered is revenue and increased by $3500 hence Crdited

12-Jul

Cash

$7,200.00

Notes payable

$7,200.00

(to record the cash borrowed by signing a notes payable)

Cash is an asset and increased by $7200 hence debited

Notes payable is liability and increased by $7200 hence credited

19-Jul

Dividends

$600.00

Cash

$600.00

(To record payment of cash dividends to Stockholders)

dividend is component of equity and increased by $600 hence debited

Cash is asset and decreased by $600 hence credited

21-Jul

Office supplies

$830.00

Cash

$830.00

(To record the cash purchase of office supplies)

office supplies are an asset and increased by $830 hence debited

Cash is asset and decreasd by $830 hence credited.

27-Jul

Accounts payable

$1,700.00

Cash

$1,700.00

(To record the cash payment on account of July 5)

Accounts payable is liability abd decreased by $1700 hence debited

Cash is asset and decreased by $1700 hence credited

Date

Particulars

Debit

Credit

2-Jul

Cash

$14,000.00

Commonstock

$14,000.00

(to record issuance of cash in exchange of common stock)

Cash is asset so increased and Debited and comon stock is part of equity hence credited.

4-Jul

Utilities

$370.00

Cash

$370.00

(To record the payment of utility bill)

Utilities is expense so increased by $370 and hence debited

Cash is paid for utilities so cash is decreased hence credited wit $370

5-Jul

Equipment

$1,700.00

Accounts Payable

$1,700.00

(To record Credit purchase of equipment)

Equipment is asset and hence increased by $1700 so debited

Accounts payable is liability and increased by $1700 hence credited

10-Jul

Accounts receivable

$3,500.00

Service revenue

$3,500.00

(to record the service revenue rendered on account)

Acc recevable is asset and increased by $3500 hence debited

Service rendered is revenue and increased by $3500 hence Crdited

12-Jul

Cash

$7,200.00

Notes payable

$7,200.00

(to record the cash borrowed by signing a notes payable)

Cash is an asset and increased by $7200 hence debited

Notes payable is liability and increased by $7200 hence credited

19-Jul

Dividends

$600.00

Cash

$600.00

(To record payment of cash dividends to Stockholders)

dividend is component of equity and increased by $600 hence debited

Cash is asset and decreased by $600 hence credited

21-Jul

Office supplies

$830.00

Cash

$830.00

(To record the cash purchase of office supplies)

office supplies are an asset and increased by $830 hence debited

Cash is asset and decreasd by $830 hence credited.

27-Jul

Accounts payable

$1,700.00

Cash

$1,700.00

(To record the cash payment on account of July 5)

Accounts payable is liability abd decreased by $1700 hence debited

Cash is asset and decreased by $1700 hence credited

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