Question

PREPARING JOURNAL ENTRIES Prepare journal entries (without explanations) for the transactions A. The owner invested $75,000 to start her own consulting busine capital cash B. The company performed $5,500 of services on account. 500 De 5.50 C. The company purchased equipment on account $4,000. equipment ACCOUnts Royable DR 4.000 CR D. The company collected $2,250 on account Accounts receivable cash E. The company received but did not pay the December telephone bill, $475. DR CR - 475 475 F. The company received an advance payment of $3,500 for services to be performed DR CR 3 500 3 500 G. The company paid for the equipment purchased in transaction "C". DR 4,000

Answer 1

Sr.No.	Particulars	Debit	Credit
A	Cash A/c Dr	75,000
	To Capital A/c		75,000
B	Accounts Receivable A/c	5,500
	To Sale of Service A/c Dr		5,500
C	Equipment A/c Dr	4,000
	To Accounts Payable A/c		4,000
D	Cash A/c Dr	2,250
	To Accounts Receivable A/c		2,250
E	Telephone Expense A/c Dr	475
	To Accounts Payable A/c		475
F	Cash A/c Dr	3,500
	To Advance from Customer A/c		3,500
G	Accounts Payable A/c Dr	4,000
	To Cash A/c		4,000