Mar Arconary Dung cuchando g hand game Peth for wipe, 52,100. Luc . de M Pidatore...

Question

Question

Answer 1

Answer #1

1) Journal Entries
Transaction	Account Titles and Explanation	Debit	Credit
a)	Cash	$30,000
	Common Stock		$30,000
	(To record the cash invested into the business)
b)	Rent Expense	$2,500
	Cash		$2,500
	(To record the payment of office and workroon rent)
c)	Automobile	$28,500
	Cash		$6,000
	Accounts Payable ($28,500 - $6,000)		$22,500
	(To record the purchase of used automobile by cash and by credit)
d)	Computer Equipment	$8,000
	Accounts Payable		$8,000
	(To record the purchase of computer equipment on account)
e)	Supplies	$2,100
	Cash		$2,100
	(To record the purchase of supplies by cash)
f)	Prepaid Insurance	$3,600
	Cash		$3,600
	(To record the prepayment of insurance)
g)	Cash	$5,000
	Professional Fees		$5,000
	(To record the services provide for cash)
h)	Miscellaneous Expenses	$2,600
	Cash		$2,600
	(To record the payment of miscellaneous expenses)
i)	Accounts Payable	$4,000
	Cash		$4,000
	(To record the payment to creditors)
j)	Notes Payable	$1,875
	Cash		$1,875
	(To record the instalment amount for the note payable)
k)	Other expenses	$5,500
	Accounts Payable		$5,500
	(To record receipt of invoice for incurring of expenses on account)
l)	Accounts Receivable	$31,400
	Professional Fees		$31,400
	(To record the services provided on account)
m)	Salaries Expense	$6,000
	Cash		$6,000
	(To record the payment of salaries)
n)	Gas, Oil and Repair Expenses	$1,300
	Cash		$1,300
	(To record the payment for gas, oil and repair expenses)

Answer 2