Question

explained in later chapters PIONEER ADVERTISING AGENCY INC. Oart of Account 311 Common Stock 320 Retained Earnings 332 Dividends 350 Income Summary 400 Service Revenue 101 Cash 112 Accounts Receivable 126 Supplies 130 Prepaid Insurance 157 Equipment 158 Accumulated Depreciation Equipment Liabilities 200 Notes Payable 201 Accounts Payable 209 Uneared Service Revenue 212 Salaries and Wages Payable 230 Interest Payable 631 Supplies Expense 711 Depreciation Expense 722 Insurance Expense 726 Salaries and Wages Expen 729 Rent Expense 732 Utilities Expense 905 Interest Expense

Moe's Landscaping company offers lawn maintenance services. Two frequent transactions for the company are billing customers for services performed and paying employee salaries. For example, on March 15, bills totaling $6,600 were sent to customers and $2,200 was paid in salaries to employees. Instructions: Write a memo to Mr. Moe Lawner that explains and illustrates the steps in the recording process for each of the March 15 transactions. Use the format illustrated in the textbook under the heading, "The Recording Process Illustrated". Please find attached the format illustrated

Answer 1

1 Transaction : On march 15, bills for $6600 were sent to customer 2 Analysis: Asset account Accounts Receivable increases and the revenue account Service Revenue decreases 3 Accounting Equation: Stock holders equity + Liability = Assets 6600 + 0 = 6600 4 Debit - Credit Analysis: Increase the Assets (accounts receivable) Dr., Increase the Revenue (Service Revenue) Cr. 5 Journal Entry Accounts receivable A/c Dr. To Service Revenue 6600 6600 6 Posting Debit side of Accounts receivable A/C. March 15, Service Revenue A/C 6600 Debit side of Service revenue A/c. March 15, Accounts Receivable A/c 6600 1 Transaction : On march 15, Salary $2200 paid to employees 2 Analysis: Asset account Cash decrease and the Expense account Salary and Wages Expense increases 3 Accounting Equation: Stock holders equity + Liability = Assets -2200 + 0 = -2200 4 Debit - Credit Analysis: Increase the Expense (Salary and Wages Expenses) Dr., Decrease the Assets (Cash) Cr. 5 Journal Entry Salary and Wages Expense A/c Dr. To Cash A/C 2200 2200 6 Posting Debit side of Salary and Wages Expense A/c. March 15, Cash A/c 2200 Debit side of Cash A/C. March 15, Salary and Wages Expense A/c 2200

1	Transaction : On march 15, bills for $6600 were sent to customer
2	Analysis: Asset account Accounts Receivable increases and the revenue account Service Revenue decreases
3	Accounting Equation:
	Stock holders equity + Liability = Assets 6600               +       0                         = 6600
4	Debit - Credit Analysis: Increase the Assets (accounts receivable) Dr. , Increase the Revenue (Service Revenue) Cr.
5	Journal Entry
	Accounts receivable A/c Dr.	6600
	To Service Revenue		6600
6	Posting
	Debit side of Accounts receivable A/c.
	March 15, Service Revenue A/c 6600
	Debit side of Service revenue A/c.
	March 15, Accounts Receivable A/c 6600
1	Transaction : On march 15, Salary $2200 paid to employees
2	Analysis: Asset account Cash decrease and the Expense account Salary and Wages Expense increases
3	Accounting Equation:
	Stock holders equity + Liability = Assets -2200               +       0                         = -2200
4	Debit - Credit Analysis: Increase the Expense (Salary and Wages Expenses) Dr. , Decrease the Assets (Cash) Cr.
5	Journal Entry
	Salary and Wages Expense A/c Dr.	2200
	To Cash A/c		2200
6	Posting
	Debit side of Salary and Wages Expense A/c.
	March 15, Cash A/c 2200
	Debit side of Cash A/c.
	March 15, Salary and Wages Expense A/c 2200