Question

The May transactions of Marigold Corp. were as follows. May 4 Paid $780 due for supplies previously purchased on account. 7 Performed advisory services on account for $7,250. 8 Purchased supplies for $890 on account. 9 Purchased equipment for $1,560 in cash. 17 Paid employees $760 in cash. 22 Received bill for equipment repairs of $860. 29 Paid $1,200 for 12 months of insurance policy. Coverage begins June 1.

Answer 1

Date	Accounts titles and explanation	Debit	Credit
May 4	Accounts payable	$780
	... Cash		$780
	(To record the payment of supplies)
May 7	Accounts Receivable	$7,250
	... Service Revenue		$7,250
	(To record the advisory services performed)
May 8	Supplies expense	$890
	... Accounts payable		$890
	(To record the purchase of supplies)
May 9	Equipmemt	$1,560
	... Cash		$1,560
	(To record the Equipment purchased)
May 17	Salaries and Wages	$760
	... Cash		$760
	(To record the salaries paid in cash)
May 22	Equipmemt Repair	$860
	... Accounts payable		$860
	(To record the bill of equipment received)
May 29	Prepaid insurance	$1,200
	... Cash		$1,200
	(To record the prepaid insurance)