IV. Applications (40 points) Coco Corporation is a IT company owned and operated

Question

IV. Applications (40 points) Coco Corporation is a IT company owned and operated by Coco Young. The following selected transactions were taken place during 1. On March 1s, Coco invested $30,000 cash into the company 2. On March 2ad, the company bought an equipment of $49,000 on account. It's estimated to operate for 7 months and will be depreciated on a monthly basis 3. On March 4th, the company received 6-month rent worth $60,000 from the it 4. On March 8th, insurance will cover the coming 10 months. 5. March 9h the company purchased supplies of $40,000 on account. 6. On May 11h, the company billed customers for services on account, $9,450 7. On May 16, the company paid $82,000 cash to creditors. 8. On May 22d, the company received $12,150 cash from customers. 9. On May 28th, Coco withdraw $20,000 cash for personal use.,. 10. On May 30th, the company received water and electricity bill of $150 which is to be paid next month. a health insurance was bought spending $80,000 in cash. The 1. Journalize all the transactions (20 points)

Explanation / Answer

IV) Journal Entries: Date Accounts Titles Debit $ Credit $ 1-Mar Cash 30000 Contributed Capital 30000 (being cash invested in company) 2-Mar Equipment 49000 Cash 49000 (bought equipment which operate for 7 months) 4-Mar Cash 60000 Rent revenue 60000 (6 months rent received0 8-Mar Prepaid Insurance 80000 cash 80000 (being health insurance for 10 months bought) 9-Mar Supplies 40000 Accounts Payable 40000 (being supplies bought on account) 11-May Accounts Receivable 9450 Service revenue 9450 (customer billed for services) 16-May Accounts payable 82000 Cash 82000 (being paid to creditors) 22-May Cash 12150 Accounts Receivable 12150 (being payment received from customers) 28-May Withdrawal 20000 Cash 20000 (being withdrawal made) 30-May Utility expense 150 Expenses payable 150 (being water and electricity bill payable next month)

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