Question

On April 1, Larkspur, Inc. began operations. The following transactions were completed during the month. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Issued common stock for $23,500 cash. Obtained a bank loan for $6,900 by issuing a note payable. Paid $10,800 cash to buy equipment. Paid $1,200 cash for April office rent. Paid $1,400 for supplies. Purchased $590 of advertising in the Daily Herald, on account. Performed services for $17,600: cash of $1,960 was received from customers, and the balance of $15,640 was billed to customers on account. Paid $390 cash dividend to stockholders. Paid the utility bill for the month, $1,960. Paid Daily Herald the amount due in transaction (6). Paid $40 of interest on the bank loan obtained in transaction (2). Paid employees' salaries, $6,270. Received $11,760 cash from customers billed in transaction (7). Paid income tax, $1,470. Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit

Answer 1

No.	Account title and explanation	Debit	Credit
1.	Cash	$23,500
	Common stock		$23,500
2.	Cash	$6,900
	Notes payable		$6,900
3.	Equipment	$10,800
	Cash		$10,800
4.	Office rent expense	$1,200
	Cash		$1,200
5.	Supplies	$1,400
	Cash		$1,400
6.	Advertising expense	$590
	Accounts payable		$590
7.	Cash	$1,960
	Accounts receivable	15,640
	Service revenue		$17,600
8.	Dividend expense	$390
	Cash		$390
9.	Utility expense	$1,960
	Cash		$1,960
10.	Accounts payable	$590
	Cash		$590
11.	Interest expense	$40
	Cash		$40
12.	Salaries expense	$6,270
	Cash		$6,270
13.	Cash	$11,760
	Accounts receivable		$11,760
14.	Income tax	$1,470
	Cash		$1,470