Question

Q4. You are given the following transactions for May, 2018: a. The business received cash $ 75,000 & issued common stock. b. Purchased supplies of $ 500 on account. c Performed service for the customer and received cash $ 2600. d. Paid $ 400 on accounts payable. e Performed service for the customer on account. f. Received $ 1900 cash on account from a customer. g. Paid the following expenses: salary $ 1100, rent $ 900. Journalize the above transactions.

Answer 1

Journal

Date	Account Title and Explanation	Debit	Credit
a	Cash	75,000
	Common stock		75,000
	(To record issue of common stock)
b	Supplies	500
	Accounts payable		500
	(To record purchase of supplies on account)
c	Cash	2,600
	Service revenue		2,600
	(To record service revenue)
d	Accounts payable	400
	Cash		400
	(To record payment of account payable)
e	Account receivable	1,900
	Service revenue		1,900
	(To record service revenue)
f	Cash	1,900
	Account receivable		1,900
	(To record cash from receivables)
g	Salary expense	1,100
	Rent expense	900
	Cash		2,000
	(To record payment for salary and rent expense)

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