Question

After returning from a three-day business trip, the accountant for Southeast Sales, Johanna Estrada, checked bank activity in the company's checking account online. The activity for the last three days follows. Additions $ 2,449.60 Business Checking Date Type 09/24/2019 Loan Payment 09/24/2019 Deposit 09/23/2019 Check 09/23/2019 Bill Payment 09/22/2019 Check 09/22/2019 Check 09/22/2019 ACH Credit 09/22/2019 ATH Account 0123456-987 Description Online Transfer to CM XOOK DEPOSIT ID NUMBER 8888 CHECK 81554 (view) Online Payment CHECK 1553 (view) CHECK W1551 (view) Edwards UK AP PAYMENT ATH WITHDRAWAL Payments Balance $5,300.00 $17,475.06 $22,775.06 $5,300.00 $20,325.46 $ 54.05 $25,625.46 $ 420.00 $25,679.51 $1,930.00 $26,099.51 $28,029.51 $ 420.00 $17,329.51 SAVIENT $10,700.00 $10,700.00 420 After matching these transactions to the company's Cash account in the general ledger, Johanna noted the following unrecorded transactions 1. The ATM withdrawal on 9/22/2019 was for personal use by the owner, Robert Savage 2. The ACH credit on 9/22/2019 was an electronic funds payment received on account from Edwards UK, a credit customer located in Great Britain. 3. The bill payment made 9/23/2019 was to Waste Control Trash Services (utilities) 4. The loan payment on 9/24/2019 was an automatic debit by Central Motors for the company's monthly payment on a loan for its automobiles. The loan does not bear interest Prepare the journal entries in a general Journal to record the four transactions above

Answer 1

Solution:

Journal Entries
Event	Particulars	Debit	Credit
1	Owner's drawings Dr	$420.00
	To Cash		$420.00
	(To record ATM withdrawl)
2	Cash Dr	$10,700.00
	To Accounts receivables		$10,700.00
	(ACH credit received from customer)
3	Utilities expense Dr	$54.05
	To Cash		$54.05
	(To record online payment of utilities)
4	Notes payable Dr	$5,300.00
	To Cash		$5,300.00
	(to record loan payment)