Question

2.

The following transactions are July activities of Bill’s Extreme Bowling, Inc., which operates several bowling centers.

1. Bill's paid $3,250 to plumbers for repairing a broken pipe in the restrooms.
2. Bill's paid $3,150 for the June electricity bill and received the July bill for $3,450, which will be paid in August.
3. Bill's paid $5,915 to employees for work in July.

Prepare journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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4.

Required information

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Ricky’s Piano Rebuilding Company has been operating for one year. On January 1, at the start of its second year, its income statement accounts had zero balances and its balance sheet account balances were as follows:

Cash	$	7,250		Accounts Payable	$	12,350
Accounts Receivable		33,000		Deferred Revenue (deposits)		4,200
Supplies		1,750		Notes Payable (long-term)		40,750
Equipment		10,500		Common Stock		11,000
Land		6,650		Retained Earnings		18,350
Building		27,500

Following are the January transactions:

1. Received a $900 deposit from a customer who wanted her piano rebuilt in February.
2. Rented a part of the building to a bicycle repair shop; $600 rent received for January.
3. Delivered five rebuilt pianos to customers who paid $12,300 in cash.
4. Delivered two rebuilt pianos to customers for $6,900 charged on account.
5. Received $4,900 from customers as payment on their accounts.
6. Received an electric and gas utility bill for $410 for January services to be paid in February.
7. Ordered $825 in supplies.
8. Paid $1,400 on account in January.
9. Paid $17,700 in wages to employees in January for work done this month.
10. Received and paid cash for the supplies in (g).

Required:

2. Prepare journal entries for the above January transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Ans 3	Journal Entry
	Sr.No.	Particulars	Debit	Credit
	a	Repairs and Maintainence	$3,250
		Cash		$3,250
		( To Record payment made for repairs expense)
	b (i)	Accounts Payable	$3,150
		Cash		$3,150
		( To Record payment to vendor)
	b (ii)	Utilities Expense	$3,450
		Accounts Payable		$3,450
		( To Record accrual of electricity expense)
	c	Salaries and Wages Expense	$5,915
		Cash		$5,915
		( To Record salary expense)
Ans 4	Journal entry for Transaction in January
	Sr.No.	Particulars	Debit	Credit
	a	Cash	$900
		Unearned Revenue		$900
		( To Record cash received from cusmer for servies yet be performed)
	b	Cash	$600
		Rental Income		$600
		( To Record rental income for January)
	c	Cash	$12,300
		Service Revenue		$12,300
		( To Record revenue from rebuild of 5 pianos)
	d	Accounts Receivable	$6,900
		Service Revenue		$6,900
		( To Record service revenue)
	e	Cash	$4,900
		Accounts Receivable		$4,900
		( To Record payment received from customers)
	f	Utilities Expense	$410
		Accounts Payable		$410
		( To Record utilities expenses on account)
	g	No Entry
		No Entry
		(On ordering of supplies)
	h	Accounts Payable	$1,400
		Cash		$1,400
		( To Record payment made)
	i	Salaries and Wages Expense	$17,700
		Cash		$17,700
		( To Record salary expense)
	j	Supplies	$825
		Cash		$825
		( To Record purchase of supplies)