Question

How to write this General Journal?

Jan 1 Will invested $500,000 in the business for operations. 1 Paid $30,000 cash for rent for the next six months. 1 Borrowed $175,000 from First National Bank. 1 Paid $6,000 for Insurance for the first quarter 2 Purchased $15,000 worth of equipment from Skyline Office equipment paying $5,000 cash with the balance being paid in 20 days. 4 Paid $1,500 cash to advertise the grand opening of the business. 5 Received $3,500 for services provided to Remmington Steele. 6 Will Taylor Donated $7,500 worth the Computer Equipment to his business. 8 Performed business services for Hush Puppy CO. and received $1750 in a cash payment. 9 Performed $22,500 of business services for PDQ Company on credit. 10 Paid $750 in cash to Puffy Cleaning Services for services provided. 11 Received $8,500 from PDQ Company for business services performed on January 9. 12 Purchased $1,300 of Office Equipment and $700 of Office Supplies on credit. 14 Performed $2,500 of business services on credit for Johnson Realty. 15 Earned Employment fees of $1500 which will be paid by 31 March 2015. 20 Paid balance due to Skyline for the equipment purchased on January 2nd. 21 Received $1,250 in cash for services performed for Johnson Realty on June 22. 22 Received computer equipment worth $5000 for services rendered to Zerox CO. 24 Accrued $750 of Interest Revenue from the bank 25 Purchased $2000 of Office Supplies on credit. 30 Paid $250 cash for this month's telephone bill. 30 Paid $750 cash for utilities. 31 Paid $5,500 for employees wages for the month. 31 Expensed January's insurance payment. 31 Expensed January's rent out of the prepaid account.

Answer 1

Journal Entries Date Account Title and Explaination Credit Post. Ref. Debit (S) (S) Jan.1 $ 500,000.00 Cash Will, Capital |(To record Cash invested into Business) $ 500,000.00 Jan.1 $ 30,000.00 Prepaid Rent Cash (To record Six months rent paid) $ 30,000.00 Jan.1 $ 175,000.00 Cash Bank Loan (To record Cash borrowed from Bank) $ 175,000.00 Jan.1 $ 6,000.00 Prepaid Insurance Cash (To record insurance premium for first quarter) 6,000.00 Jan.2 $ 15,000.00 Equipment Cash Accounts Payable (To record Equipment purchased and cash paid for part of due) 5,000.00 10,000.00

Jan.4 1,500.00 Advertising Expense Cash |(To record advertising expenses paid) $ 1,500.00 Jan.5 $ 3,500.00 Cash Service Revenue (To record Cash received for service provided) $ 3,500.00 Jan.6 7,500.00 Computer Equipment Will, Capital (To record Computer brings into business) $ 7,500.00 Jan.8 1,750.00 $ 1,750.00 Cash Service Revenue (To record Service provided for cash) Accounts Receivaable Service Revenue (To record Service provided on account) Jan.9 22,500.00 $ 22,500.00 Jan.10 $ 750.00 Cleaning Expense Cash (To record Cleaning expense paid) $ 750.00

Jan.11 $ 8,500.00 Cash Service Revenue (To record Cash received for service provided) 8,500.00 Jan.12 1,300.00 700.00 Office Equipment Office Supplies Accounts Payable (To record Equipment and supplies purchased on account) 2,000.00 $ 2,500.00 Jan.14 Accounts Receivable Service Revenue (To record Service Provided on account) $ 2,500.00