Question

 Exercise 2-9

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

 1. Stockholders invested $24,000 in the business in exchange for common stock.

 2. Obtained a bank loan for $7,000 by issuing a note payable.

 3. Paid $11,000 cash to buy equipment.

 4. Paid $1,200 cash for April office rent.

 5. Paid $1,450 for supplies.

 5 Purchased $600 of advertising in the Daily Herald, on account.

 7. Performed services for $18,000: cash of $2,000 was received from customers, and the balance of $16,000 was billed to customers on account.

 ৪. Paid $400 dividend to stockholders.

 9. Paid the utility bill for the month, $2,000.

 10. Paid Daily Herald the amount due in transaction (6).

 11. Paid $40 of interest on the bank loan obtained in transaction (2).

 12. Paid employees' salaries and wages, $6,400.

 13. Received $12,000 cash from customers billed in transaction (7).

 Journalize the transactions.

 Exercise 2-14

 Selected transactions for Alvarado Company during its first month in business are presented below.

 Sept. 1 Stockholders invested $10,000 cash in the business in exchange for common stock.

 5 Purchased equipment for $12,000 paying $4,000 in cash and the balance on account.

 25 Paid $2,400 cash on balance owed for equipment.

 30 Declared and paid a $500 cash dividend.

 Alvarado's chart of accounts shows No. 101 Cash, No. 157 Equipment, No. 201 Accounts Payable, No. 311 Common Stock, and No. 332 Dividends.

 Journalize the transactions.

Answer 1

No.	Accounts Titles and Explanation	Debit	Credit
1	Cash	$24,000
	Common stock		$24,000
2	Cash	$7,000
	Notes payable		$7,000
3	Equipment	$11,000
	Cash		$11,000
4	Rent expense	$1,200
	Cash		$1,200
5	Supplies	$1,450
	Cash		$1,450
6	Advertisement expense	$600
			$600
7	Cash	$2,000
	Accounts receivable	$16,000
	Service revenue		$18,000
8	Dividend	$400
	Cash		$400
9	Utility expense	$2,000
	Cash		$2,000
10	Accounts payable	$600
	Cash		$600
11	Interest expense	$40
	Cash		$40
12	Salaries and wages expense	$6,400
	Cash		$6,400
.
13	Cash	$12,000
	Accounts receivable		$12,000
Date	Accounts Titles and Explanation	Debit	Credit
Sep 1	Cash	$10,000
	Common stock		$10,000
Sep 5	Equipment	$12,000
	Cash		$4,000
	Accounts payable		$8,000
	Accounts payable	$2,400
	Cash		$2,400
Sep 30	Dividend	$500
	Cash		$500