Journal entry January1Common stock is issued in exchange for cash in the amount of. ..410,000The company borrows money from the bank by signing a promissory notein the amount of...186,100The company pays cash for a one-year insurance policy in the amount of..Rent on a storage facility for the month is paid in the amount of. .Landscaping equipment is purchased for cash in the amount of...112,300210,2504328,0007Supplies are purchased on account in the amount of..17,95810The company pays for advertisements to be run during the current monthin the amount of.. .1,53815Services are performed for cash in the amount of...34,03020Services are performed on account in the amount of..17,22025A customer pays cash in advance for future services in the amount of...6,15030Gasoline for the lawn mowers for the current month is paid in cash in theamount of...2,306FebruaryRent on the storage facility for the month is paid in the amount of. .10,250Salaries for the previous month are paid in the amount of...20,500A partial payment is made on account for supplies purchased earlier. .15,264The company pays for advertisements to be run during the current monthin the amount of...1,61410Services are performed for cash in the amount of..35,732Services are performed on account in the amount of..Cash is received from credit customers for services performed in the1818,08120previous month in the amount of..15,49825Services performed for the customer who paid in advance totaled.2,46027Gasoline for the lawn mowers for the current month is paid in cash in theamount of.....2,42228Dividends are paid in cash to stockholders' in the amount of. .4,100Information for Monthly Adjusting Entriesа.Supplies on hand at the end of each month are as follows:January..10,775February.3,053b.Depreciation for each month totals:.5,467C.Employees are paid on the first of the month for salaries earned in theprevious month. Accrued salaries at the end of each month are as follows:At January 31.20,500At February 28..21,525d.The principal on the loan is due in 2 years. Interest (at a rate of 10%) isaccrued at the end of each month and is payable at the end of each year,beginning December 31, 2021. (ROUND TO THE NEAREST DOLLAR.)е.Adjustments are made at the end of each month for prepaid insurance.(ROUND TO THE NEAREST DOLLAR.)1169

Date Particulars debit Credit Jan 1 Common stock 410000 To cash 410000 Jan…

January 1 Common stock is issued in exchange for cash in the amount of. .. 410,000 The company borrows money from the bank by signing a promissory note in the amount of... 1 86,100 The company pays cash for a one-year insurance policy in the amount of.. Rent on a storage facility for the month is paid in the amount of. . Landscaping equipment is purchased for cash in the amount of... 1 12,300 2 10,250 4 328,000 7 Supplies are purchased on account in the amount of.. 17,958 10 The company pays for advertisements to be run during the current month in the amount of.. . 1,538 15 Services are performed for cash in the amount of... 34,030 20 Services are performed on account in the amount of.. 17,220 25 A customer pays cash in advance for future services in the amount of. 6,150 30 Gasoline for the lawn mowers for the current month is paid in cash in the amount of.... 2,306

January 1 Common stock is issued in exchange for cash in the amount of. .. 410,000 The company borrows money from the bank by signing a promissory note in the amount of... 1 86,100 The company pays cash for a one-year insurance policy in the amount of.. Rent on a storage facility for the month is paid in the amount of. . Landscaping equipment is purchased for cash in the amount of... 1 12,300 2 10,250 4 328,000 7 Supplies are purchased on account in the amount of.. 17,958 10 The company pays for advertisements to be run during the current month in the amount of.. . 1,538 15 Services are performed for cash in the amount of... 34,030 20 Services are performed on account in the amount of.. 17,220 25 A customer pays cash in advance for future services in the amount of. 6,150 30 Gasoline for the lawn mowers for the current month is paid in cash in the amount of.... 2,306

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 19EB: A business has the following transactions: A. The business is started by receiving cash from an...

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Similar questions

Provide journal entries to record each of the following transactions. For each, identify whether the transaction represents a source of cash (S), a use of cash (U), or neither (N). A. Paid $22,000 cash on bonds payable. B. Collected $12,600 cash for a note receivable. C. Declared a dividend to shareholders for $16,000, to be paid in the future. D. Paid $26,500 to suppliers for purchases on account. E. Purchased treasury stock for $18,000 cash.
Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April. Prepare the journal entries in the journal on Page 1. A. The owners invested $8,500 from their personal account to the business account. B. Paid rent $650 with check #101. C. Initiated a petty cash fund $550 check #102. D. Received $750 cash for services rendered. E. Purchased office supplies for $180 with check #103. F. Purchased computer equipment $8,500, paid $1,600 with check #104 and will pay the remainder in 30 days. G. Received $1,200 cash for services rendered. H. Paid wages $560, check #105. I. Petty cash reimbursement office supplies $200, Maintenance Expense $140, Miscellaneous Expense $65. Cash on Hand $93. Check #106. J. Increased Petty Cash by $100, check #107.
Prepare journal entries to record the following transactions. Create a T-account for Cash, post any entries that affect the account, and calculate the ending balance for the account. Assume a Cash beginning balance of $16,333. A. February 2, issued stock to shareholders, for cash, $25,000 B. March 10, paid cash to purchase equipment, $16,000
Lavender Company started its business on April 1, 2019. The following are the transactions that happened during the month of April. Prepare the journal entries in the journal on Page 1. A. The owners invested $7,500 from their personal account to the business account. B. Paid rent $600 with check #101. C. Initiated a petty cash fund $250 check #102. D. Received $350 cash for services rendered. E. Purchased office supplies for $125 with check #103. F. Purchased computer equipment $1,500, paid $500 with check #104, and will pay the remainder in 30 days. G. Received $750 cash for services rendered. H. Paid wages $375, check #105. I. Petty cash reimbursement Office Supplies $50, Maintenance Expense $80, Miscellaneous Expense $60. Cash on hand $8. Check #106. J. Increased Petty Cash by $70, check #107.
Prepare journal entries to record the following transactions for the month of November: A. on first day of the month, issued common stock for cash, $20,000 B. on third day of month, purchased equipment for cash, $10,500 C. on tenth day of month, received cash for accounting services, $14,250 D. on fifteenth day of month, paid miscellaneous expenses, $3,200 E. on last day of month, paid employee salaries, $8,600
Domingo Company started its business on January 1, 2019. The following transactions occurred during the month of May. Prepare the journal entries in the journal on Page 1. A. The owners invested $10,000 from their personal account to the business account. B. Paid rent $500 with check #101. C. Initiated a petty cash fund $500 with check #102. D. Received $1,000 cash for services rendered. E. Purchased office supplies for $158 with check #103. F. Purchased computer equipment $2,500, paid $1,350 with check #104, and will pay the remainder in 30 days. G. Received $800 cash for services rendered. H. Paid wages $600, check #105. I. Petty cash reimbursement: office supplies $256, maintenance expense $108, postage expense $77, miscellaneous expense $55. Cash on hand $11. Check #106. J. Increased petty cash by $30, check #107.
Journal Entries Overnight Delivery Inc. is incorporated on February 1 and enters into the following transactions during its first month of operations: February 15: Received $8,000 cash from customer accounts. February 26: Provided $16,800 of services on account during the month. February 27: Received a $3,400 bill from the local service station for gas and oil used during February. February 28: Paid $400 for wages earned by employees for the month. February 28: Paid $3,230 for February advertising. February 28: Declared and paid $2,000 cash dividends to stockholders. Required Prepare journal entries on the books of Overnight to record the transactions entered into during February. Explain why you agree or disagree with the following: The transactions on February 28 all represent expenses for the month of February because cash was paid. The transaction on February 27 does not represent an expense in February because cash has not yet been paid.
Hajun Company started its business on May 1, 2019. The following transactions occurred during the month of May. Prepare the journal entries in the journal on Page 1. A. The owners invested $5,000 from their personal account to the business account. B. Paid rent $400 with check #101. C. Initiated a petty cash fund $200 check #102. D. Received $400 cash for services rendered E. Purchased office supplies for $90 with check #103. F. Purchased computer equipment $1,000, paid $350 with check #104 and will pay the remainder in 30 days. G. Received $500 cash for services rendered. H. Paid wages $250, check #105. I. Petty cash reimbursement office supplies $25, Maintenance Expense $125, Miscellaneous Expense $35. Cash on hand $18. Check #106. J. Increased Petty Cash by $50, check #107.
Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received customer payments of $965 B. supplies purchased on account $435 C. services worth $850 performed, 25% is paid in cash the rest will be billed D. corporation pays $275 for an ad in the newspaper E. bill is received for electricity used $235. F. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?
Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
Entries Prepared from a Trial Balance and Proof of the Cash Balance Russell Company was incorporated on January 1 with the issuance of capital stock in return for $120,000 of cash contributed by the owners. The only other transaction entered into prior to beginning operations was the issuance of a $50,000 note payable in exchange for equipment and fixtures. The following trial balance was prepared at the end of the first month by the bookkeeper for Russell Company: Required Determine the balance in the Cash account. Identify all of the transactions that affected the Cash account during the month. Use a T account to prove what the balance in Cash will be after all transactions are recorded.
Prepare journal entries to record the following transactions that occurred in April: A. on first day of the month, issued common stock for cash, $15,000 B. on eighth day of month, purchased supplies, on account, $1,800 C. on twentieth day of month, billed customer for services provided, $950 D. on twenty-fifth day of month, paid salaries to employees, $2,000 E. on thirtieth day of month, paid for dividends to shareholders, $500