Question

1. Galle Inc. entered into the following transactions during January.

   1. January 1: Borrowed $84,000 from First Street Bank by signing a note payable.
   2. January 4: Purchased $25,000 of equipment for cash.
   3. January 6: Paid $500 to landlord for rent for January.
   4. January 15: Performed services for customers on account, $22,900.
   5. January 25: Collected $3,000 from customers for services performed in Transaction d.
   6. January 30: Paid salaries of $2,500 for the current month.

   Required:

   Prepare journal entries for the transactions.

   Jan. 1	Accounts Receivable Cash Notes Payable Service Revenue Wages Payable
   	Accounts Receivable Cash Equipment Notes Payable Rent Expense
   	(Record issuance of note payable)
   4	Accounts Receivable Cash Equipment Service Revenue Wages Payable
   	Accounts Receivable Cash Equipment Rent Expense Salaries Expense
   	(Record purchase of equipment)
   6	Accounts Receivable Cash Rent Expense Service Revenue Wages Payable
   	Accounts Receivable Cash Equipment Rent Expense Salaries Expense
   	(Record payment of rent)
   15	Accounts Payable Accounts Receivable Cash Notes Payable Service Revenue
   	Accounts Receivable Cash Rent Expense Salaries Expense Service Revenue
   	(Record performance of services)
   25	Accounts Receivable Cash Notes Payable Service Revenue Wages Payable
   	Accounts Receivable Cash Equipment Rent Expense Salaries Expense
   	(Record collection from customer)
   30	Accounts Receivable Cash Notes Payable Salaries Expense Wages Payable
   	Accounts Receivable Cash Equipment Rent Expense Salaries Expense
   	(Record payment of salaries)

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Answer 1

| Credit Date Jan. 01 Debit 84,000 84,000 Jan. 04 25,000 25,000 Jan. 06 500 General Journal Cash Notes Payable Equipment Cash Rent Expense Cash Accounts Receivable Service Revenue Cash Accounts Receivable Salaries Expense Cash 500 Jan. 15 22,900 22,900 Jan. 25 3,000 3,000 Jan. 30 2,500 2,500