Question

The following information apples to the questions displayed below) Ricky's Plano Rebuilding Company has been operating for one year. On January 1, at the start of its second year, its income statement accounts had zero balances and its balance sheet account balances were as follows: Cash Accounts Receivable Supplies Equipment Land Building $ 6,400 Accounts Payable $10,750 21.5ee Deferred Revenue 30 (deposits) 4,650 2,850 Notes Payable (long-term) 41,000 17,200 Common Stock 12,000 9,300 Retained Earnings 13,250 24,400 Following are the January transactions: a. Received a $565 deposit from a customer who wanted her plano rebuilt in February b. Rented a part of the building to a bicycle repair shop: $410 rent received for January c. Delivered five rebuilt planos to customers who paid $22,525 In cash d. Delivered two rebuilt planos to customers for $10,800 charged on account. e. Received $8,600 from customers as payment on their accounts. 1. Received an electric and gas utility bill for $495 for January services to be paid in February g. Ordered $1,040 in supplies. h. Pald $3,600 on account in January I Paid $13,400 In wages to employees in January for work done this month J. Received and paid cash for the supplies in (g). Required: 2. Prepare journal entries for the above January transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account feld.)

Answer 1

Transaction	General Journal	Debit	Credit
a.	Cash	$565	-
	Accounts Receivable	-	$565
b.	Cash	$410	-
	Rent Revenue	-	$410
c.	Cash	$22,525	-
	Service revenue	-	$22,525
d.	Accounts receivable	$10,800	-
	Service revenue	-	$10,800
e.	Cash	$8,600	-
	Accounts receivable	-	$8,600
f.	Utility expense	$495	-
	Accounts payable / Utilities payable	-	$495
g.	No entry
h.	Accounts payable	$3,600	-
	Cash	-	$3,600
i.	Salaries and wages expense	$13,400	-
	Cash	-	$13,400
j.	Supplies	$1,040	-
	Cash	-	$1,040