Question

The following account balances are provided for Green Goblin Corporation at December 31 2018: Title Accounts payable Accounts receivable Bank loan due June 1, 2020 Cash Commissions payable Salaries and wages payable Common stock (no par) Equipment (net) Interest payable Interest receivable Investments Prepaid expenses Retained eamings Supplies Unearmed revenue Balance 65,000 90,000 154,000 45,000 12,000 16,000 200,000 318,750 1200 450 33,000 28,000 71,700 25,000 32,000 All January 2019 transactions follow: 1. Provided services on account for a total of $375,000 2. Provided services worth $23,000 paid for in prior months. 3. Used S14,000 in supplies 4. Sold equipment with book value of $23,000 for $19,000 cash. 5. Paid accounts payable of S51,500 6. Collected $346,000 on customer accounts. 7. Issued common stock for $125,000 8. Purchased a vehicle worth S50,000 in exchange for a note payable due on March 1, 2020. 9. Paid S195,000 in salaries, including S16,000 owed from the month of December 2018. 10. Paid $83,000 in commissions including those owed at December 31 11. Collected S18,500 for services to be provided in March. 12. Received a $2,500 bill for December utilities. 13. Paid $2,250 for January and February radio advertisements. 14. Received an interest payment of $900 including the interest accrued at 12/31/2018. 15. Paid $12,000 for January rent. 16. Paid income tax expense of $28,706

Please help to solve part a to c, I need this one so much thanks a lot.

Answer 1

Following would be the journal entries :-

S no	General journal	debit	Credit
1 .	Accounts receivable Service revenue (To revenue )	375000	375000
2 .	Unearned revenue Service revenue (To service provided for which Cash was received earlier )	23000	23000
3 .	Supplies exp Supplies (To supplied used )	14000	14000
4 .	Cash Loss on sale of equipment Equipment (To sale of equipment )	19000 4000	23000
5 .	Accounts payable Cash (To accounts payable paid )	51500	51500
6 .	Cash Accounts receivable (To cash collected )	346000	346000
7 .	Cash Common stock (To commin stock issued )	125000	125000
8.	Vehicle Notes payable (To vehicle purchased on notes payable )	50000	50000
9.	Salaries exp Salaries payable Cash (To salary paid alongwith previous month )	179000 16000	195000
10 .	Commission exp Commission payable Cash (To commission paid alongwith previous month)	71000 12000	83000
11.	Cash Unearned revenue (To cash collected tor services to be provided in March )	18500	18500
12 .	Utilities exp Utilities payable (To utilities payable )	2500	2500
13 .	Advertisement exp Prepaid advertisement exp Cash (To advertisement paid for this month and next)	1125 1125	2250
14.	Cash Interest income Interest receivable (To interest )	900	450 450
15.	Rent exp Cash (To rent paid for the month )	12000	12000
16.	Income tax Cash (To income tax paid )	28706	28706

B Following are the two accounts

Accounts receivable

To Bal b/d	90000	by cash	346000
To service revenue	375000	by bal c/d	119000

Service revenue

To bal c/d / profit and loss	398000	By accounts receivable	375000
		By unearned revenue	23000

Unearned revenue

To service revenue	23000	By bal b/d	32000
To bal c/d	27500	Bh cash	18500

Supplies exp

To supplies	14000	By profit and loss	14000

Supplies

To bal b/d	25000	by supplies exp	14000
		By bal c/d	11000

Equipment

To bal b/d	318750	by cash	19000
		By loss on sale of equipment	4000
		By Bal c/d	295750

Accounts payable

To cash	51500	By bal b/d	65000
To bal b/d	13500

Common stock

		By bal b/d	200000
		By cash	125000
To bal c/d	325000

Vehicle

To notes payable	50000

Commission exp

To cash	71000	to profit and loss	71000

Commission payable

To cash	12000	By bal b/d	12000

Salaries exp

To cash	179000	By profit and loss	179000

Salaries payable

To cash	16000	By bal b/d	16000

Utilities exp

To utilities payable	2500	by profit and loss	2500

Utilities payable

To bal c/d

2500

By utilities

2500