Question

Question 2

(10 marks)

John Tree started a business, Tree Trimming, which is a proprietorship, on June 01, 2018. The following transactions occurred in June 2018:

• June 5: Tree Trimming provided tree trimming services for a client, on account, for $ 3,000.
• June 9: John Tree withdrew $ 500 from his personal bank account and used the funds to purchase a television for his mother.
• June 15: Tree Trimming received cash for the June 5 work that it had performed.
• June 22: Tree Trimming paid $ 250 regarding an ad that it placed in the local newspaper.
• June 24: Tree Trimming received $ 10,000 cash for tree trimming services it performed that day.

Required:

Journalize the above transactions affecting Tree Trimming. Provide a written explanation for each journal entry recorded or not recorded.

Answer 1

Date	Account Title	Debit	Credit
June 5	Accounts Receivable	$3,000
	Service Revenue		$3,000
	(To record service revenue provided on account)
June 9	No Entry Required
	No Entry Required
	(Since this is a personal account transaction not related to the business)
June 15	Cash	$3,000
	Accounts Receivable		$3,000
	(To record collection from customer)
June 22	Advertising Expense	$250
	Cash		$250
	(To record advertisement expense)
June 24	Cash	$10,000
	Service Revenue		$10,000
	(To record service revenue)