Question

What are the journal entries for the following transactions?

Transactions to Record for the month of March

1-Mar	Issued 1,000 shares of F&F common stock for $30,000. The common stock has a $10 par value.
1-Mar	Paid $4,500 for rent for the Months of March and April
1-Mar	Hired two employees. Each employee will be paid $20 per hour. Employees will start on March 8th.
1-Mar	Borrowed $10,000 cash on a 3-year, 6% Note Payable, Interest is paid quarterly with the first payment due on June 1. Assume all months have 30 days.   See Account Titles
1-Mar	Purchased with cash four identical computers for $1,500 each. 4 desks with chairs for $800 each, 4 filing cabinets for $300 each and a $700 printer.
3-Mar	Purchased $2,500 of supplies on account.
5-Mar	Paid $250 for phone and internet service for the month of March.
6-Mar	Obtained Insurance coverage for $3,600 for a six-month period from March 1st to August 31st. Paid the premium in Cash.
10-Mar	Placed ads in the local papers. Each ad costs $80 per week and will run for the 3 weeks left in March and 4 weeks into April. (Total of 7 weeks.) The ads were placed on account.
15-Mar	Billed customers $4,500. $2,000 was for accounting services and the remainder for tax work.
16-Mar	Paid employees $1,200 for their services for the first week.
17-Mar	Several customers paid in advance for the firm to prepare their tax returns.   F&F received a check for $2,700.
20-Mar	Paid $800 toward the cost of supplies. See March 3rd transaction
22-Mar	Received Check for $2,400 from customers for the services billed on March 15.
23-Mar	Paid employees $1,750 for services from March 15 to March 22
25-Mar	Determined that a more powerful computer was need. One of the $1,500 computers was sold for $1,200 and a new computer costing $2,800 was purchased for cash. Ignore any depreciation on the computer sold.
28-Mar	F&F was informed that a customer who was billed $150 on March 15th had declared bankruptcy. Using the allowance method, write off this account.
29-Mar	Repurchased 200 shares of F&F common stock at $25 per share. These shares will be held in the treasury and will not receive cash dividends.
31-Mar	Paid employees $1,900 for services from March 23 to March 30
31-Mar	Billed Customers $7,900. $3,000 was for accounting services and the remainder for tax work.
31-Mar	Declared and Paid a cash dividend of $1.00 per share. (Treasury Stock does not receive this dividend.)

Answer 1

F&F Dr. Journal Enteries Date Particulars Debit in $ Credit in $ Mar-01 Cash a/c 30000 To Common Stock 10000 To Additional paid in Capital 20000 (Common stock issued) 1000 x 10 = 10000 Dr. 4500 Mar-01 Prepaid Rent a/c To Cash (Rent paid for 3 months) 4500 Mar-01 No journal entry Dr. 10000 Mar-01 Cash a/c To Note Payable (Cash borrowed) 10000 Mar-01 Computer a/c Furniture a/c Printer a/c To Cash (Assets purchased) 6000 4400 700 11100 2500 Mar-03 Supplies a/c Dr. To Accounts Payable (Supplies on account) 2500 Dr. 250 Mar-05 Internet Expense a/c To Cash (Internet expense paid) 250 Dr. 3600 Mar-06 Prepaid Insurance a/c To Cash (Insurance paid for 6 months) 3600 560 Mar-10 Advertisement expense a/c Dr. To Accounts Payable (Advertisement expense incurred) 560 Dr. 4500 Mar-15 Accounts Receivable a/c To Service Revenue (Sevices on account) 4500

Dr. Date Particulars Mar-16 Salary expense a/c To Cash (Salary paid) Debit in $ Credit in $ 1200 1200 Mar-17 2700 Cash a/c Dr. To Unearned Revenue (Advance from client) 2700 Dr. 800 Mar-20 Accounts Payable a/c To Cash (Creditors paid) 800 2400 Mar-22 Cash a/c Dr. To Accounts Receivable (Cash from debtors) 2400 Dr. 1750 Mar-23 Salary expense a/c To Cash (Salary paid) 1750 Dr. Dr. 1200 300 Mar-25 Cash a/c Loss on Sale a/c To Computer (Computer sold) 1500 Dr. 2800 Computer a/c To Cash (Computer purchased) 2800 Mar-28 Allowance for Doubtful accounts Dr. To Accounts Receivable (Uncolletibles written off) 150 5000 Mar-29 Treasury Stock a/c Dr. To Cash (Treasury stock purchased) 25 x 200 5000 Dr. 1900 Mar-31 Salary expense a/c To Cash (Salary paid) 1900 Dr. 7900 Mar-31 Accounts Receivable a/c To Service Revenue (Sevices on account) 7900 800 Mar-31 Cash Dividend a/c Dr. To Cash (Dividend paid) ( 1000 - 200 ) x 1 800

F&F Dr. Journal Enteries Date Particulars Debit in $ Credit in $ Mar-01 Cash a/c 30000 To Common Stock 10000 To Additional paid in Capital 20000 (Common stock issued) 1000 x 10 = 10000 Dr. 4500 Mar-01 Prepaid Rent a/c To Cash (Rent paid for 3 months) 4500 Mar-01 No journal entry Dr. 10000 Mar-01 Cash a/c To Note Payable (Cash borrowed) 10000 Mar-01 Computer a/c Furniture a/c Printer a/c To Cash (Assets purchased) 6000 4400 700 11100 2500 Mar-03 Supplies a/c Dr. To Accounts Payable (Supplies on account) 2500 Dr. 250 Mar-05 Internet Expense a/c To Cash (Internet expense paid) 250 Dr. 3600 Mar-06 Prepaid Insurance a/c To Cash (Insurance paid for 6 months) 3600 560 Mar-10 Advertisement expense a/c Dr. To Accounts Payable (Advertisement expense incurred) 560 Dr. 4500 Mar-15 Accounts Receivable a/c To Service Revenue (Sevices on account) 4500

Dr. Date Particulars Mar-16 Salary expense a/c To Cash (Salary paid) Debit in $ Credit in $ 1200 1200 Mar-17 2700 Cash a/c Dr. To Unearned Revenue (Advance from client) 2700 Dr. 800 Mar-20 Accounts Payable a/c To Cash (Creditors paid) 800 2400 Mar-22 Cash a/c Dr. To Accounts Receivable (Cash from debtors) 2400 Dr. 1750 Mar-23 Salary expense a/c To Cash (Salary paid) 1750 Dr. Dr. 1200 300 Mar-25 Cash a/c Loss on Sale a/c To Computer (Computer sold) 1500 150 Mar-28 Allowance for Doubtful accounts Dr. To Accounts Receivable (Uncolletibles written off) 150 5000 Mar-29 Treasury Stock a/c Dr. To Cash (Treasury stock purchased) 25 x 200 5000 Dr. 1900 Mar-31 Salary expense a/c To Cash (Salary paid) 1900 Dr. 7900 Mar-31 Accounts Receivable a/c To Service Revenue (Sevices on account) 7900 800 Mar-31 Cash Dividend a/c Dr. To Cash (Dividend paid) ( 1000 - 200 ) x 1 800