Question

Journal entries, t-accounts and Trial balance

Question Help During the first month of operations. Smith Services, Inc., completed the following transactions (Click the icon to view the transaction data) Read the requirements Requirement 1. Record each transaction in the journal Key each transaction by date. Explanations are not required (Record debits first, then credits. Exclude explanations from journal entries) Od 2. Smith Services received $65,000 cash and issued common stock to the stockholders Journal Entry Accounts Date Debit Credit try) Od 3 Purchased supplies, 5800 and equipment, 512,100, on account (Prepare a single compound un Journal Entry Date Accounts Debit Credit Oct & Performed services for a customer and received cash 55 400 Joumal Entry

Answer 1

Smith Services Inc. Journal entries Date Account 2-Oct Cash Common Stock Debit $ 66,000 $ 66,000 3-Oct Supplies Equipment Accounts Payable $ $ 800 12,100 $ 12,900 $ 5,400 4-Oct Cash Service Revenue $ 5,400 $ 36,000 7-Oct Land Cash $ 36,000 $ 3,500 11-Oct Accounts Receivable Service Revenue $ 3,500 $ 12,100 16-Oct Accounts Payable Cash $ 12,100 $ 620 17-Oct Advertising expense Cash $ 620 $ 1,400 18-Oct Cash Accounts Receivable $ 1,400 $ 450 22-Oct Utilities expense Cash $ 450 $ 3,100 29-Oct Cash Service Revenue $ 3,100 $ 2,200 31-Oct Salary expense Cash $ 2,200 $ 1,400 31-Oct Dividends Cash $ 1,400

Credit Credit Date Debit Date Credit Accounts Receivable 11-Oct $ 3,500 18-Oct $ 1,400 Date Debit Date Supplies 3-Oct $ 800 Date Debit Date Equipment 3-Oct $ 12,100 Smith Services Inc. T Accounts Date Debit Date Credit Cash 2-Oct $ 66,000 7-Oct $ 36,000 4-Oct $ 5,400 16-Oct $ 12,100 18-Oct $ 1,400 17-Oct $ 620 29-Oct $ 3,100 22-Oct $ 450 31-Oct $ 2,200 31-Oct $ 1,400 Bal. Bal. $ 23,130 Land 7-Oct $ 36,000 Bal. $ 2,100 Accounts Payable 16-Oct $ 12,100 3-Oct $ 12,900 $ 800 Common Stock 2-Oct $ 66,000 Bal. $ 12,100 Dividends 31-Oct $ 1,400 Bal. $ 800 $ 66,000 $ 36,000 Service Revenue 4-Oct $ 5,400 11-Oct $ 3,500 29-Oct $ 3,100 Bal. Salary expense 31-Oct $ 2,200 Bal. Advertising expense 17-Oct $ 620 Bal. $ 1,400 Utilities expense 22-Oct $ 450 Bal. $ 12,000 Bal. $ 2,200 Bal. $ 620 Bal. $ 450

Smith Services Inc. Account Names Cash Accounts Receivable Supplies Equipment Land Accounts Payable Common Stock Dividends Service Revenue Salary expense Advertising expense Utilities expense Totals Trial Balance Debit Credit 23,130 2,100 800 12,100 36,000 800 66,000 1,400 12,000 2,200 620 450 78,800 78,800

12,000 Smith Services Inc. Income Statement For the Month Ended October 31 Service Revenue Expenses Salary expense Advertising expense Utilities expense Total Expenses Net Income 2,200 620 450 3,270 8,730 Statement of Retained Earnings For the Month Ended October 31 Beginning balance Net Income Less Dividends Ending Balance 8,730 (1,400) 7,330

Smith Services Inc. Balance Sheet As of October 31 Assets Current Assets Cash Accounts Receivable Supplies Total Current Assets 800 Liabilities & Stockholders Equity Current Liabilities 23,130 Accounts Payable 2,100 800 26,030 Property, Plant & Equipment Equipment Land Total Property, Plant & Equipment Stockholders Equity 12,100 Common Stock 36,000 Retained Earnings 48,100 Total Stockholders Equity 66,000 7,330 73,330 Total Assets 74,130 Total Liabilities & Stockholders Equity 74,130 Req4 Total Resources 74,130 Total Assets Amount owed 800 Accounts Payable The company was profitable, as it reported net income of $8,730