Question

Exercise 3-12 Your answer is partially correct. Try again. Selected accounts of Skysong, Inc. are as follows. Supplies Expense 7/31 800 Supplies 1,500 7/31 7/1 Bal. 800 7/10 750 Accounts Receivable 7/31 7/15 7/31 400 Salaries and Wages Expense 1,600 1,600 Salaries and Wages Payable 7/31 Unearned Service Revenue 1,100|7/1 Bal. 7/20 Service Revenue 1,600 7/31 7/31 2,000 1,600 7/14 2,700 7/31 1,100 7/31 400

Answer 1

Required Journals are as below:

Date	Account titles and explanations	Ref.	Debit	Credit
July 10	Supplies		750
	Cash			750
	To record purchase of supplies on cash.
July 31	Supplies expense		800
	Supplies			800
	To record the use of supplies in production.
July 31	Accounts receivable		400
	Service revenue			400
	To record service revenue on account.
July 15	Salaries and wages expense		1,600
	Cash			1,600
	To record payment of salaries and wages during the period.
July 31	Salaries and wages expense		1,600
	Salaries and wages payable			1,600
	To record outstanding salaries and wages during the period.
July 20	Cash		1,600
	Unearned service revenue			1,600
	To record of receiving cash in advance for revenue.
July 31	Unearned service revenue		1,100
	Service revenue			1,100
	To record earned revenue previously collected.
July 14	Cash		2,700
	Service revenue			2,700
	To record service revenue done through cash.

Note: opening balance of supplies and unearned service revenue (7/1) should not be reflected in the above journal, since these are already in journal in the previous month.