Question

10) Repairs Co. began business on March 1. During their first month of operations, Repairs had the following transactions. March 1 Received $28,000 of cash and issued common stock to shareholders. March 5 Paid advertising expense of $1,000 in cash. March 9 Purchased land for cash of $11,500 and a $33,000 loan. March 10 Purchased $1,700 of supplies on account. March 19 Paid $800 on account. (ie, paid off accounts payable of $800) March 22 Borrowed $18,500 from the local bank and signed loan documents March 29 Service revenue earned during the month was $14,500 in cash and $4,500 on account. March 30 Paid March rent of $2,000, March employee salaries of $2,100 and March utilities of $1,100. March 31 Declared and paid cash dividends of $2,000 a) Show all journal entries Repairs would have to make during the month of March b) Show Repair's T-accounts for cash, accounts payable, and loans payable. Next-

Answer 1

Journal entries of repairs

Date	Particulars	Debit amount	Credit amount
Mar 1	Cash A/C----Dr	28000
	To Common stock A/C		28000
	(Being common stock issued to shareholders)
Mar 5	Advertising expense A/C---Dr	1000
	To Cash A/C		1000
	(Being cash paid for advertising expense)
Mar 9	Land A/C----Dr	44500
	To Cash A/C		11500
	To Loan A/C		33000
	(Being land purchased)
Mar 10	Purchase A/C-----Dr	1700
	To Accounts payableA/C		1700
	(Being purchase of service)
Mar 19	Accounts payable A/C---Dr	800
	To Cash A/C		800
	(Being cash paid to Accounts payable)
Mar 22	Cash A/C----Dr	18500
	To Loan A/C		18500
	(Being loan borrowed from bank)
Mar 29	Cash A/C----Dr	14500
	Accounts receivable A/C---Dr	4500
	To Service revenue A/C		19000
	(Being service revenue received)
Mar 30	Rent A/C----Dr	2000
	Salary A/C------Dr	2100
	Utilities A/C----Dr	1100
	To Cash A/C		5200
	(Being expenses paid)
Mar 31	Shareholder A/C----Dr	2000
	To Dividend payable A/C		2000
	(Being dividend payable due)
Mar 31	Dividend payable A/C----Dr	2000
	To Cash A/C		2000
	(Being dividend paid)

Cash A/C

Date	Particulars	Amount	Date	Particulars	Amount
Mar 1	To common stock A/C	28000	Mar 5	By Advertising expense A/C	1000
Mar 22	To loan A/C	18500	Mar 9	By land A/C	11500
Mar 29	To service revenue A/C	14500	Mar 19	By accounts payable A/C	800
			Mar 30	By rent A/C	2000
			Mar 30	By salary A/C	2100
			Mar 30	By utilities A/C	1100
			Mar 31	By dividends payable A/C	2000
			Mar 31	By balance c/d	40500
		61000			61000
Apr 1	To balance b/d	40500

Accounts payable A/C

Date	Particulars	Amount	Date	Particulars	Amount
Mar 19	To cash A/C	800	Mar 10	By purchase A/C	1700
Mar 31	To balance c/d	900
		1700			1700
			Apr 1	By balance b/d	900

Loans payable A/C

Date	Particulars	Amount	Date	Particulars	Amount
			Mar 9	By Land A/C	33000
Mar 31	To balance c/d	51500	Mar 22	By cash A/C	18500
		51500			51500
			Apr 1	By balance b/d	51500