Question

The following transactions occurred during a recent year: a. Paid wages of $900 for the current period (example). b. Borrowed $4,500 cash from local bank using a short-term note. c. Purchased $1,800 of equipment on credit. d. Earned $360 of sales revenue; collected cash. e. Received $720 of utilities services, on credit. f. Earned $1,530 of service revenue, on credit. g. Paid $270 cash on account to a supplier. h. Incurred $65 of travel expenses; paid cash. 1. Earned $360 of service revenue; collected half in cash, with balance on credit. J. Collected $95 cash from customers on account. k. Incurred $280 of advertising costs; paid half in cash, with balance on credit. Required:

Answer 1

1.

	Assets		=	Liabilities		+	Stockholders Equity
a	Cash	-     900.00	=				Salaries and wages expense	-     900.00
b	Cash	4,500.00	=	Short term note payable	4,500.00
c	Equipment	1,800.00	=	Accounts Payable	1,800.00
d	Cash	360.00	=				Sales Revenue	360.00
e				Accounts Payable	720.00		Utilities Expense	-     720.00
f	Accounts Receivable	1,530.00					Service Revenue	1,530.00
g	Cash	-     270.00		Accounts Payable	-     270.00
h	Cash	-       65.00					Travel Expense	-       65.00
i	Cash	180.00					Service Revenue	360.00
	Accounts Receivable	180.00
j	Cash	95.00
	Accounts Receivable	-       95.00
k	Cash	-     140.00		Accounts Payable	-     140.00		Advertising expense	-     280.00

2. 285