Question

The following transactions occurred for Lawrence Engineering:
Jul. 2
4
5 10 12 19 21 27
Received $14,000 contribution from Brett Lawrence, owner, in exchange for capital.
Paid utilities expense of $370.
Purchased equipment on account, $1,600.
Performed services for a client on account, $2,900.
Borrowed $7,100 cash, signing a notes payable.
The owner, Brett Lawrence, withdrew $200 cash from the business. Purchased office supplies for $840 and paid cash.
Paid the liability from July 5.
Accounting 1
Handouts
Requirements:
R1. Journalize the transactions of Lawrence Engineering. Include an explanation with each journal entry. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Equipment; Accounts Payable; Notes Payable; Lawrence, Capital; Lawrence, Withdrawals; Service Revenue; and Utilities Expense.

Answer 1

ANSWER

Date	Accounts & Explanation	Debit	Credit
02-Jul	Cash	$        14,000
	Common Stock		$           14,000
Common Stock being issued against the contribution of $14,000
04-Jul	Utilities Expense	$              370
	Cash		$                 370
Utilities expense being paid
05-Jul	Equipment	$           1,600
	Accounts Payable		$              1,600
Equipment being purchased on account
10-Jul	Account Receivable	$           2,900
	Service Revenue		$              2,900
Service Revenue performed being recorded
12-Jul	Cash	$           7,100
	Notes Payable		$              7,100
Cash being received against Notes Payable
19-Jul	Dividends	$              200
	Cash		$                 200
Cash dividends being paid to stockholders
21-Jul	Office Supplies	$              840
	Cash		$                 840
Office Supplies being purchased
27-Jul	Accounts Payable	$           1,600
	Cash		$              1,600
Accounts Payable against equipment purchased on July-5 being paid

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