Question

Brier Exercises- Presented below are a number of economic events. 1. Purchased supplies on account, $240. 2. Provided a service on account, $510. 3. Paid salaries expense, $330. 4. Issued common shares in exchange for cash, $5,460. 5. Declared and paid $100 of dividends to shareholders. 6. Received cash from a customer who had previously been billed for services provided, $510 (see item 2). 7. Paid account owed to supplier on account, $240 (see item 1). 8. Paid for insurance in advance, $90. 9. Received cash in advance from a customer for services to be performed in the future, $290. 10. Performed the service that the customer previously paid for (see item 9). Journalize the transactions given above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit 1.

Answer 1

Sr.No.	Account Title	Debit	Credit
1	Supplies	$240
	Accounts Payable		$240
	(To record purchase of supplies on account)
2	Accounts Receivable	$510
	Service Revenue		$510
	(To record service revenue)
3	Salaries Expense	$330
	Cash		$330
	(To record salaries expense)
4	Cash	$5,460
	Common stock		$5,460
	(To record issue of common stock)
5	Dividend	$100
	Cash		$100
	(To record dividend payment)
6	Cash	$510
	Accounts Receivable		$510
	(To record payment received from customer)
7	Accounts Payable	$240
	Cash		$240
	(To record payment to vendor)
8	Prepaid Insurance	$90
	Cash		$90
	(To record insurance paid in advance)
9	Cash	$290
	Deferred Service Revenue		$290
	(To record cash received in advance)
10	Deferred Service Revenue	$290
	Service Revenue		$290
	(To record service revenue)