Question

Exercise 3-7 a-e (Part Level Submission) Selected transactions for the Blossom Corporation during its first month of operations are presented below: Sept. 1 Issued common shares for $18,500 cash. 2 Performed $8,200 of services on account for a customer. 4 Purchased equipment for $11,200, paying $5,400 in cash and borrowing the balance from the bank. 10 Purchased $460 of supplies on account. 25 Received $4,900 cash in advance for architectural services to be provided next month. 30 Paid $276 on account in partial payment of amount owing for supplies. (See September 10 transaction.) 30 Collected $4,700 on account owing from customer (see September 2 transaction).

Answer 1

Answer:

In the books of Blossom Corporation

Journal Entries

Date	Account Titles and Explanation	Debit ($)	Credit ($)
Sept.1	Cash Account	18,500
	To Common Stock Account		18,500
	(Being issuance of common shares for cash recorded)
Sept.2	Customer’s Or Receivable’s Account	8,200
	To Service Revenue Account		8,200
	(Being service revenue recorded on account)
Sept.4	Equipment’s Account	11,200
	To Cash Account		5,400
	To Bank Loan Account		5,800
	(Being purchase of equipment recorded)
Sept.10	Purchases Account	460
	To Supplier’s Or Payable’s Account		460
	(Being purchases on account recorded)
Sept.25	Cash Account	4,900
	To Unearned Revenue Or Advance from Customer’s Account		4,900
	(Being advance income recorded)
Sept.30	Supplier’s Account	276
	To Cash Account		276
	(Being partial payment to supplier recorded)
Sept.30	Cash Account	4,700
	To Customer’s Account		4,700
	(Being receipt of cash on account recorded)