BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

Solutions

Chapter
Section
BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
1 views

Problem 2-59A Journalizing Transactions

Monroe Company rents and sells electronic equipment. During September, Monroe engaged in the transactions described below.

Sept. 5 Purchased a Chevrolet truck for $38,900 cash.

8 Purchased inventory for $4200 on account.

10 Purchased $1,250 of office supplies on credit.

11 Rented sound equipment to a traveling stage play for $13,600. The producer of the play paid for the service at the time it was provided.

Sept 12 Rented sound equipment and lights to a local student organization for a school dance for $2,400. The student organization will pay for services within 30 days.

18 Paid employee wages of $4,750. What have been earned during September.

22 Collected the receivable from the September 12 transaction.

23 Borrowed $20000 cash from a bank on a 3-year note payable.

28 Issued common stock to new stockholders for $35,000.

30 Paid a $3,250 cash dividend to stock-holders

Required:

Prepare a journal entry for each transaction.

To determine

Journal Entries:

Journal entries are medium of recording business transactions. A business enterprise must record all the business transaction to evaluate net income or loss and analyze the financial performance of a company during a specified accounting period.

Journalize the transactions which occurred during the month of January.

Explanation
    Date AssetsLiabilitiesStockholders’ Equity
    Sept.
    5Increase (Truck)
    Decrease (Cash)
    8Increase (Merchandise Inventory)Increase (Accounts Payable)
    10Increase (Supplies)Increase (Accounts Payable)
    11Increase (Cash)Increase (Service Revenue)
    12Increase (Accounts Receivable)

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

(Cooperatives) How do cooperatives differ from typical businesses?

ECON: MICRO4 (New, Engaging Titles from 4LTR Press)

Should an economic model describe reality exactly?

Principles of Economics (MindTap Course List)

Explain the differences among data, information, and a database.

Database Systems: Design, Implementation, & Management

Explain the difference between the element-by-element and matrix operations.

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

What semi-precision tool is used to take angular measurements?

Precision Machining Technology (MindTap Course List)

What is the difference between a cybercriminal and a cyberterrorist?

Principles of Information Systems (MindTap Course List)

What e agile methods? Are they better than traditional methods? Why or why not?

Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)

Differentiate among the following technology user types: home user, small/home office user, mobile user, power ...

Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)