Question

Problem 2-4B Record transactions (LQ2-4) Eli owns an insurance office, while Olivia operates a maintenance service that provides basic custodial duties. For the month of May. the following transactions occurred. 0livia decides that she vill need insurance for a one-day special event at the end of the month and pays Eli $120 in advance. May 2 May 5 olivia provides naintenance services to Eli's insurance offices on account, $335. May May 14 0livia purchases naintenance supplies from Spot Corporation, paying cash of $110. May 19 Eli pays $335 to Olivia for maintenance services provided on May 5. May 25 Eli pays the utility bill for the month of May, $117. May 28 0livia receives insurance services from Eli equaling the amount paid on May 2. May 31 Eli pays $320 to olivia for money borroved on May 7. 7 Eli borrows $320 from 0livia by signing a note. Required: Record each transaction for Ell's insurance Services. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Journal Entries in the books of Eli insurance services

Date	Account title and Explanation	Debit	Credit
May 1	Cash	$120
	Unearned revenue		$120
	[To record cash received in advance]
May 5	Maintenance Expense	$335
	Accounts payable		$335
	[To record maintenance expense]
May 7	Cash	$320
	Notes payable		$320
	[To record cash received in exchange of note]
May 14	No Entry
May 19	Accounts payable	$335
	Cash		$335
	[To record cash paid for accounts payable]
May 25	Utilities expense	$117
	Cash		$117
	[To record utilities expense]
May 28	Unearned revenue	$120
	Service revenue		$120
	[To record revenue from unearned]
May 31	Notes payable	$320
	Cash		$320
	[To record cash paid for notes payable]