Question

Current Attempt in Progress On April 1, Tamarisk, Inc. began operations. The following transactions were completed during the month. 1. Issued common stock for $27,400 cash. 2. Obtained a bank loan for $8,000 by issuing a note payable. 3. Paid $12,500 cash to buy equipment. 4. Paid $1,400 cash for April office rent. 5. Paid $1,650 for supplies. 6. Purchased $680 of advertising in the Daily Herald, on account. 7. Performed services for $20,500: cash of $2,280 was received from customers, and the balance of $18,220 was billed to customers on account. 8. Paid $460 cash dividend to stockholders. 9. Paid the utility bill for the month, $2,280. 10. Paid Daily Herald the amount due in transaction (6). 11. Paid $50 of interest on the bank loan obtained in transaction (2). 12. Paid employees' salaries, $7,300. 13. Received $13,680 cash from customers billed in transaction (7). 14. Paid income tax, $1,710. 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.)

Answer 1

Journal entry

No	General Journal	Debit	Credit
1	Cash	27400
	Common Stock		27400
2	Cash	8000
	Notes payable		8000
3	Equipment	12500
	Cash		12500
4	Rent expense	1400
	Cash		1400
5	Supplies	1650
	Cash		1650
6	Advertising expense	680
	Account payable		680
7	Cash	2280
	Account receivable	18220
	Service revenue		20500
8	Cash dividend	460
	Cash		460
9	Utilities expense	2280
	Cash		2280
10	Account payable	680
	Cash		680
11	Interest expense	50
	Cash		50
12	Salaries expense	7300
	Cash		7300
13	Cash	13680
	Account receivable		13680
14	Income tax expense	1710
	Cash		1710