Question

Prepare the following journal entries in proper journal entry form.

1. Bought supplies on credit for $700.

2. Received $3,600 to start a six-month job, beginning next month.

3. Started a company by contributing equipment worth $3,400, land worth $80,000 and cash of $10,000 into a business checking account.

4. Billed a customer for a $2,100 job.

5. Received a gas bill, $150.

6. Paid $300 for van repairs.

7. Purchased supplies for $500 in cash.

8. Withdrew $1,600 and deposited it into his personal checking account.

9. Received $950 for a job he just completed.

10. Agreed to do a job for a customer for $600.

11. Purchased another van for $14,000; and a computer for $2,000 on account.

12. Received $3,000 from a customer for a job previously completed.

13. Purchased land worth $4,000,000. Paid $2,700,000 in cash and signed a note for

the balance.

14. Paid $3,600 for 3 months rent.

15. Contributed $2,000 of personal funds to the company’s cash account.

16. Paid $300 regarding transaction in number 1, above.

17. Paid his assistant $500 for this week’s salary.

18. Paid his assistant for a month’s work.

19. Paid cash to creditors on account, $100.

20. The first month of the job in number 2 above has passed.

21. One month has passed since transaction number 14above.

22. Depreciation on the building for the month was $100,000.

23. Received payment for the job in number 4, above.

24. Completed a job and billed the client $700.

25. Customer paid $5,000 on an $8,000 job.

Answer 1

S.no	Particulars	Debit	Credit
1	suppiles	700
	accounts payable		700
	( supplies purchased)
2	cash	3600
	Advance for job		3600
	( Being advence received)
3	Equipment	3400
	Land	80000
	Cash	10000
	Capital Account		93400
	( being capital contributed)
4	Accounts Receivable	2100
	Revenue		2100
	(being revenue reognised)
5	Gas expenses	150
	Accounts payable		150
	( gas expenses recognised)
6	Repair expenses	300
	Cash		300
	( paid for van repair)
7	supplies	500
	cash		500
	(supplies purchased)
8	Drawings	1600
	cash		1600
	( being cash withdrawn for personal account)
9	Cash	950
	Revenue		950
	(being revenue received)
10	no entry
11	Van	14000
	Computer	2000
	Accounts payable		16000
	( being van and computer purchased)
12	Cash	3000
	Accounts receivable		3000
	( being cash received )
13	Land	4000000
	Cash		2700000
	Note payable		1300000
	( being land purchased)
14	prepaid rent	3600
	Cash		3600
	( being advance rent paid)
15	Cash	2000
	Capital		2000
	( being cash contributed)
16	Accounts payable	300
	Cash		300
	( being cash paid for supplies)
17	Salary expenses	500
	cash		500
	( being salary paid to assistant)
18	Advance given	2000
	Cash		2000
	( being assistnat paid for a month)
19	account payable	100
	cash		100
	( being cash paid to creditors)
20	Advance for job	600
	revenue		600
	( being revenue reognised)
21	Rent expense	1200
	prepaid rent		1200
	( being rent expense recognised)
22	Depreciation	100000
	Building		100000
	( being depreciation recognised)
23	Cash	2100
	Accounts receivable		2100
	( being cash received)
24	Accounts receivable	700
	Revenue		700
	( being revenue recognised)
25	Cash	5000
	Accounts receivable	3000
	revenue		8000
	( being revenue recognised)