Question

Complete the following general journal entries using both accrual and cash basis accounting methods for Acme Consulting Corporation: 9/2/2014 Purchases furniture and dental equipment on account from Green Jacket Co. for $17,280 9/4/2014 Pays 1/2 the bill owed to Green Jacket Co. 9/5/2014 Pays $422 for office supplies. 9/8/2014 Receives cash of $1,690 from clients for services performed. 9/14/2014 Bills clients $5,820 for services performed. 9/18/2014 Pays $3,600 towards bill owed to Green Jacket Co. 9/20/2014 Receives $980 from clients on account. 9/26/2014 Purchases more office supplies on account from Supplies R Us for $433 9/27/2014 Issues a refund on account for $275 9/30/2014 Depreciation of $520 is recorded for the month 9/30/2014 Ending office supplies inventory at the end of the month equal $222

Answer 1

SOLUTION:

Date	Accounts	Debit	Credit
02/09/2014	Fixed Asset	$17,280.00
	Accounts Payable		$17,280.00
04/09/2014	Accounts Payable	$8,640.00
	Cash		$8,640.00
05/09/2014	Supplies Expense	$422.00
	Cash		$422.00
08/09/2014	Cash	$1,690.00
	Service Revenue		$1,690.00
14/09/2014	Accounts Receivable	$5,820.00
	Service Revenue		$5,820.00
18/09/2014	Accounts Payable	$3,600.00
	Cash		$3,600.00
20/09/2014	Cash	$980.00
	Accounts Receivable		$980.00
26/09/2014	Supplies	$433.00
	Accounts Payable		$433.00
27/09/2014	Service Revenue Refund	$275.00
	Accounts Receivable		$275.00
30/09/2014	Depreciation Expense	$520.00
	Accumulated Depreciation		$520.00
30/09/2014	Supplies Expense	$633.00
	Supplies		$633.00
	Cash Basis Accounting
Date		Debit	Credit
02/09/2014	No entry
04/09/2014	Fixed Asset	$8,640.00
	Cash		$8,640.00
05/09/2014	Supplies Expense	$422.00
	Cash		$422.00
08/09/2014	Cash	$1,690.00
	Service Revenue		$1,690.00
14/09/2014	No entry
18/09/2014	Fixed Asset	$3,600.00
	Cash		$3,600.00
20/09/2014	Cash	$980.00
	Service Revenue		$980.00
26/09/2014	No entry
27/09/2014	No entry
30/09/2014	Depreciation Expense	$520.00
	Accumulated Depreciation		$520.00
30/09/2014	No entry