Question

The following are business transactions of The Great Tutoring Service for June of the current year: a Jane Goodman invested $10,500 cash to begin the business b. Paid building rent of $400 for the first month. c. Purchased furniture and equipment on account for $5,400. d. Purchased supplies for $125 cash. e. Received $225 cash for services rendered. f. Paid furniture and equipment suppliers $300 on account. g. Billed clients $1,250 for tutoring service rendered. h. Received $350 cash from clients previously billed. I paid salaries of $1,000 to employees. 1. Paid $100 for utilities for the month. k Paid legal fees of $250. 1. Purchased $175 worth of supplies on account. m. Paid a $90 invoice for advertising expense for this month. n Jane Goodman used $300 from business for personal expenses Required: Record each of the transactions for The Great Tutoring Service for June of the current year.

Answer 1

Credit S Journal entries :- S.No Accounts Title & Explanation Cash To Capital, Jane goodman (Entry for investment of capital) Debit $ 10,500 10,500 400 Rent expense To Cash (Entry for rent payment of first month) 400 5,400 Furniture and equipment To Accounts Payable (Entry for purchase of furniture and equipment) 5,400 125 Supplies To Cash (Entry for purchase of supplies) 125 225 Cash To Service Revenue (Entry for service rendered for cash) 225 Accounts Payable 300 To Cash (Entry for payment of dues to funtiture and equipment supplier) 300 1,250 Accounts Receivable To Service Revenue (Entry for service rendered for credit) 1,250 h 350 Cash To Accounts Receivable (Entry for collection from accounts receivable dues) 350 1,000 Salaries expense To Cash (Entry for payment of salaries) 1,000 100 Utilities expense To Cash (Entry for payment of utilities) 100 250 Legal fee To Cash (Entry for payment of legal fee) 250 175 Supplies To Accounts Payable (Entry for purchase of supplies on credit) 175 m 90 Advertising expense To Cash (Entry for payment of advertising expense) 90 300 Drawings, Jane Goodman To Cash (Entry for cash withdrawl form business by Jane) 300