Dec 2 Dec 3 Dec 4 Dec 7 Dec 11 Wortham Services received $70,000 cash and issued common stock to the stockholders. Purchased supplies, $700, and equipment, $11,400, on account. Performed services for a customer and received cash, $5,600. Paid cash to acquire land, $40,000. Performed services for a customer and billed the customer, $3,100. Wortham expects to collect within one month. Dec 16 Dec 17 Dec 18 Received partial payment from customer on account, $1,000. Received and paid the water and electricity bills, $400. Dec 22 Dec 29 Received $2,900 cash for servicing the heating unit of a customer. Paid employee salaries, $2,600. Paid for the equipment purchased December 3 on account. Paid for newspaper advertising. $570. Dec 31 Dec 31 Declared and paid dividends of $1,800.

Survey of Accounting (Accounting I)
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Author:Carl Warren
Publisher:Carl Warren
Chapter2: Basic Accounting Systems: Cash Basis
Section: Chapter Questions
Problem 2.10E: Effects of transactions on Accounting equation On Time Delivery Service had the following selected...
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During the first month of operations, Wortham Services, Inc., completed the following transactions:
1(Click the icon to view the transaction data.)
Read the requirements.
Dec 4: Performed services for a customer and received cash, $5,600.
Journal Entry
Date
Dec
Accounts
Dec 7: Paid cash to acquire land, $40,000.
Date
Dec
Journal Entry
Accounts
Debit
Debit
Credit
Credit
Transcribed Image Text:During the first month of operations, Wortham Services, Inc., completed the following transactions: 1(Click the icon to view the transaction data.) Read the requirements. Dec 4: Performed services for a customer and received cash, $5,600. Journal Entry Date Dec Accounts Dec 7: Paid cash to acquire land, $40,000. Date Dec Journal Entry Accounts Debit Debit Credit Credit
Dec 2 Wortham Services received $70,000 cash and issued common stock to the
stockholders.
Purchased supplies, $700, and equipment, $11,400, on account.
Dec 3
Dec 4
Dec 7
Dec 11
Performed services for a customer and received cash, $5,600.
Paid cash to acquire land, $40,000.
Performed services for a customer and billed the customer, $3,100. Wortham
expects to collect within one month.
Dec 16
Paid for the equipment purchased December 3 on account.
Paid for newspaper advertising. $570.
Dec 17
Dec 18
Received partial payment from customer on account, $1,000.
Dec 22 Received and paid the water and electricity bills, $400.
Dec 29 Received $2,900 cash for servicing the heating unit of a customer.
Dec 31 Paid employee salaries, $2,600.
Dec 31 Declared and paid dividends of $1,800.
Transcribed Image Text:Dec 2 Wortham Services received $70,000 cash and issued common stock to the stockholders. Purchased supplies, $700, and equipment, $11,400, on account. Dec 3 Dec 4 Dec 7 Dec 11 Performed services for a customer and received cash, $5,600. Paid cash to acquire land, $40,000. Performed services for a customer and billed the customer, $3,100. Wortham expects to collect within one month. Dec 16 Paid for the equipment purchased December 3 on account. Paid for newspaper advertising. $570. Dec 17 Dec 18 Received partial payment from customer on account, $1,000. Dec 22 Received and paid the water and electricity bills, $400. Dec 29 Received $2,900 cash for servicing the heating unit of a customer. Dec 31 Paid employee salaries, $2,600. Dec 31 Declared and paid dividends of $1,800.
Expert Solution
Explanation -

Journal Entries - Journal Entries are the recording of transactions of the organization. It is recorded as Debit and Credit. All the transactions are recorded using journals in the form of debit and credit.

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