Question

On April 1, Lily Travel Agency began operations. The following transactions were completed during the month.

1.		Owner invested $26,000 in the business.
2.		Obtained a bank loan for $6,400 by issuing a note payable.
3.		Paid $12,500 cash to buy equipment.
4.		Paid $1,200 cash for April office rent.
5.		Paid $1,400 for supplies.
6.		Purchased $900 of advertising in the Daily Herald, on account.
7.		Performed services for $21,000: cash of $3,000 was received from customers, and the balance of $18,000 was billed to customers on account.
8.		Cash withdrawal of $500 by owner for personal use.
9.		Paid the utility bill for the month, $3,300.
10.		Paid Daily Herald the amount due in transaction (6).
11.		Paid $50 of interest on the bank loan obtained in transaction (2).
12.		Paid employees’ salaries and wages, $6,900.
13.		Received $12,000 cash from customers billed in transaction (7).

Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Transaction Credit Debit | 26,000 $ $ 26,000 $ 6,400 $ 6,400 $ 12,500 $ 12,500 1,200 $ 1,200 1,400 $ 1,400 900 $ 900 General Journal Cash Owner's Capital Cash Notes Payable Equipment Cash Office Rent Expense Cash Supplies Cash Advertising Expense Accounts Payable Cash Accounts Receivable Service Revenue Owner's Withdrawal Cash Utility Expense Cash Accounts Payable Cash Interest Expense Cash Salaries and Wages Expense Cash $ $ 3,000 18,000 $ 21,000 500 $ 500 $ 3,300 $ 3,300 10 $ 900 900 50 50 6,900 6,900 Cash 12,000 Accounts Receivable 12,000