Question

I need help with the journal entry. I wanted to know if my journal entry is correct. I am not too sure with my answer.

EA1-R2 Record Journal Entries
In this exercise, you will record journal entries in Excel. The four transactions you use, all of which
took place during 2016, are as follows:
• August 2: Purchased twelve months of insurance coverage in advance for $3,600
• August 9: Billed clients $6,000 for services rendered
• August 21: Received $4,200 from clients for previously billed services
• August 31: Recorded an adjusting journal entry for the portion of insurance coverage from
the August 2 purchase that has now expired
1. Create a Blank Workbook template and save the file in your Chapter 01 folder as:
EA1-R2-JournalEntries-[YourName]
2. In cell A1, type 8/2/2016 and then enter the debited account for the first journal entry
in cell B1 and its amount in cell D1. Tap [Enter] to complete your final cell entry.
3. In cell C2, type the credited account for the first journal entry and tap [Enter].
4. Select cell D1 and choose Home→Clipboard→Copy.
5. Select cell E2 and press [Ctrl]+[V].
The debited amount is pasted into cell E2 as the credited amount in the first journal entry.
6. Type Purchased Insurance Coverage in Advance in cell B3 and click
Enter on the Formula Bar.
Clicking the Enter checkmark on the Formula Bar confirms the entry within cell B3 while
keeping that cell active.
7. Choose Home→Font→Italic.
8. In cell A4, type 8/9/2016 and then enter the debited account for the second journal
entry in cell B4 and its amount in cell D4. Tap [Enter] to complete your final cell entry.
9. In cell C5, type the credited account and tap [Tab] two times, type the credited amount in
cell E5, and tap [Enter].
10. In cell B6, type Billed Clients for Services and tap [Enter].
11. Tap the up arrow and then press [Ctrl]+[I] to apply italic formatting.
12. In cell A7, type 8/21/2016 and then enter the debited account for the third journal
entry in cell B7 and its amount in cell D7. Tap [Enter] to complete your final cell entry.
13. In cell C8, type the credited account and tap [Tab] twice, type the credited amount in
cell E8, and tap [Enter].
14. In cell B9, type Received Payment on Account and tap [Enter].
15. Select cell B9 and choose Home→Font→Italic.
Reinforce Your Skills 25
16. In cell A10, type 8/31/2016 and then enter the debited account for the fourth journal
entry in cell B10 and its amount in cell D10. Tap [Enter] to complete your final cell entry.
17. In cell C11, type the credited account and tap [Tab] twice, type the credited amount in
cell E11, and tap [Enter].
18. In cell B12, type Adjusting Entry for Expired Insurance and tap [Enter].
19. Select cell B9, choose Home→Clipboard→Copy, select cell B12, and choose
Home→Clipboard→Paste →Formatting.
20. Highlight the range D1:E11, choose Home→Number→Number Format→
Accounting, and then click Decrease Decimal twice.
21. Click the columns A–E headers and then double-click between the columns A–B
headers.
Double-clicking widened the columns to fit the text within them.
22. Click cell A1, right-click the column B header, choose Column Width, and then type 5
and click OK.
23. Highlight the range A1:E12, choose Page Layout→Page Setup→Print Area→
Set Print Area, and choose File→Print.
24. If directed, choose Print; otherwise, click the back arrow at the top-left of Backstage view.
25. Save and close your file.

Answer 1