Question

Analyzing and Recording Transactions CHAPTER 2 QS 2-9 Analyzing and recording journal entries L Dee Bell Company had the following transactions in the month of May. 12-11 Cal lculate th АС May 2 Dee Bell transferred her personal car valued at $8,000 into the business. Did $4,000 of work for a customer on account. Collected $10,000 from a customer for work to be done in July 2020. Paid wages of $6,000. Collected $4,000 from the customer of May 10. Paid $3,000 of the outstanding accounts payable. 22

Answer 1

May 2

Analysis: Car is contribution as owner capita. Car under assets will increase and Dee’s Capital will also increase.

Date	Account Titles	Debit	Credit
May 2	Car	$8,000	-
	Dee’s capital	-	$8,000

May 10

Analysis: Customers to whom the services are rendered but the amount is not yet received from them are known as account receivables. Accounts receivables has a debit balance and is shown under assets and service revenues as shown in the income statement and has a credit balance.

Date	Account Titles	Debit	Credit
May 10	Accounts receivable	$4,000	-
	Service revenue	-	$4,000

May 12

Analysis: Amount collected from the customer in advance is known as unearned revenues or prepaid revenues which is considered as a liability and has a credit balance. When incomes are received in advance cash is debited and prepaid revenues or unearned revenues are credited.

Date	Account Titles m	Debit	Credit
May 12	Cash	$10,000	-
	Unearned revenue	-	$10,000

May 15:

Analysis: Wages is an expense and has a debit balance. When wages are paid wages expenses debited and cash account is credited.

Date	Account Titles	Debit	Credit
May 15	Salaries and wages expense	$6,000	-
	Cash	-	$6,000

May 16

Analysis: When Cash is received from accounts receivable, cash account is debited and accounts receivable is credited.

Date	Account Titles	Debit	Credit
May 16	Cash	$4,000	-
	Accounts receivable	-	$4,000

May 22

Analysis: Accounts payable has a credit balance and is considered a liability. When accounts payable are paid, accounts payable is debited and cash is credited.

Date	Account Titles	Debit	Credit
May 22	Accounts payable	$3,000	-
	Cash	-	$3,000