Question

py. During December, Swanson Auction Co. completed the following transactions: 620 Dec 1 S 10 19 22 Swanson received €27,000 cash and issued ordinary shares to the shareholders. Paid monthly rent, €3,000. Paid €12,100 cash and signed a €32,000 note payable to purchase land for an office site. Purchased supplies on account, €1,600. Paid €500 on account. Borrowed €19,000 from the bank for business use. Swanson signed a note payable to the bank in the name of the business. Service revenue earned during the month included €15,200 cash and €5,000 on account. Paid employees' salaries (€2,200), advertising expense (€900), and utilities expense (€1,300). Declared and paid a cash dividend of €3,000. 31 31 Swanson's business uses the following accounts: Cash, Accounts Receivable, Supplies, Land, Accounts Payable, Notes Payable, Share Capital, Dividends, Service Revenue, Salary Expense, Rent Expense, Advertising Expense, and Utilities Expense. P2-71B Requirements: 1. Journalize each transaction of Swanson Auction Co. Explanations are not require

Answer 1

Journal entrie in books of Swanson auction CE debit Date particulars Credil December 27000 Cash Ale or 27000 to share capital ale 3000 5 Rent expense Alcor to cast Ale 3000 पप/०० Land 12100 ale or to cart Alc to Notes payable All 32000 Supplies Alc or 10 1600 to accounts payelle 1600 500 Accounts payable Alcor to cash Ale 500 22 cash 19000 ale or to Notes payable 19000 cash ale or accounty secevable Akor to Servia revenue 5000 15200 20000

particulars debt credit obate December 2200 900 31 Salary expense Alcor adrealising expers Alcor utilities expenses Alcor 1300 4400 to carh Al 3000 3) Dividends Ale or 3000 to Cash Ale