Question

Prepare journal entries for the following transactions that occurred during 2017.

May 1 Purchased equipment on account $500

2 Paid for the equipment purchased on may1

3 Purchased supplies for the cats $100

4 Paid wages to employees $2,000

5 Performed services for a client and collected cash $750

6 Did work for a customer on credit $2,500

7 Collected the amount owing from the customer of may 6.

Answer 1

Answer

--Explanations/narration to the journal entry are already mentioned in the transaction. Transactions have been recorded on the 'date' basis.

Date	General Journal	Debit	Credit
May-01	Equipment	$500
	Accounts Payable		$500
May-02	Accounts payable	$500
	Cash		$500
May-03	Supplies	$100
	Cash		$100
May-04	Wages expenses	$2,000
	Cash		$2,000
May-05	Cash	$750
	Service revenue		$750
May-06	Accounts receivables	$2,500
	Service revenue		$2,500
May-07	Cash	$2,500
	Accounts receivables		$2,500