Question

Problem 2-4B Record transactions (LO2-4) Ell owns an insurance office, while Olivia operates a maintenance service that provides basic custodial duties. For the month of May. the following transactions occurred. May 2 Olivia decides that she will need insurance for a one-day special event at the end of the month and pays Eli $180 in advance. May 5 Olivia provides maintenance services to Eli's insurance offices on account, $365. May 7 Eli borrowS $380 from Olivia by signing a note. May 14 Olivia purchases maintenance supplies from Spot Corporation, paying cash of $140. May 19 Eli pays $365 to Olivia for maintenance services provided on May 5. May 25 Eli pays the utility bill for the month of May $123. May 28 Olivia receives Insurance services from all equaling the amount paid on May 2. May 31 Eli pays $380 to Olivia for money borrowed on May 7. Required: Record each transaction for Eli's insurance Services (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 5 6 7 Olivia decides that she will need insurance for a one-day special event at the end of the month and pays Ell $180 in advance.

Answer 1

P 2-4B Record each transaction for Eli's insurance service as follows: | Credit Date Account Titles May 02 Cash Deferred Revenue Debit $180 $180 $365 May 05 Maintenance Expense Accounts payable $365 $380 May 07 Cash Notes payable $380 May 14 No entry required May 19 $365 Accounts payable Cash May 25 $123 Utilities expense Cash $123 $180 May 28 Deferred revenue Service revenue $180 May 31 Notes payable Cash $380