Question

Tom Zopf owns and manages a computer repair service, which had the following trial balance on December 31, 2019 (the end of its fiscal year). Credit Tablette Repair Service, Inc. Trial balance December 31, 2019 Debit Cash $ 8,000 Accounts Receivable 15,000 Supplies 11,000 Prepaid Rent 3,000 Equipment 21,000 Accounts Payable Common Stock Retained Earnings $58,000 $17,000 30,000 11,000 $58,000 Summarized transactions for January 2020 were as follows. 1. 2. 3. 4. 5. 6. 7. 8. Advertising costs, paid in cash, $1,000. Additional supplies acquired on account $3,600 Miscellaneous expenses, paid in cash, $1,700. Cash collected from customers in payment of accounts receivable $13,000. Cash paid to creditors for accounts payable due $14,400. Repair services performed during January: for cash $5,000; on account $9,000. Wages for January, paid in cash, $3,000. Dividends durina January were $1.600.

Answer 1

1) T account

Cash
Jan 1	8000
Account receivable
Jan 1	15000
Supplies
Jan 1	11000
Prepaid rent
Jan 1	3000
Equipment
Jan 1	21000
Account payable
		Jan 1	17000
Common Stock
		Jan 1	30000
Retained earnings
		Jan 1	11000

Journal entries

Transaction	General journal	Debit	Credit
1	Advertising expense	1000
	Cash		1000
2	Supplies	3600
	Account payable		3600
3	Miscellaneous expense	1700
	Cash		1700
4	Cash	13000
	Account receivable		13000
5	Account payable	14400
	cash		14400
6	Cash	5000
	Account receivable	9000
	Service revenue		14000
7	Wages expense	3000
	Cash		3000
8	Cash dividend	1600
	Cash		1600