Question

On October 1, 2016. Satillo Richey opened an advertising agency. DATE TRANSACTIONS Oct. 1 Satillo Richey invested $52,000 cash in the business 2 Paid October office rent of $2,600; issued Check 1001. 5 Purchased desks and other office furniture for $14,200 from Office Furniture Mart, Inc., received Invoice 6704 payable in 60 days. 6 Issued Check 1002 for $2.800 to purchase art equipment 7 Purchased supplies for $1,150; paid with Check 1003. 10 Issued Check 1004 for $520 for office cleaning service. Performed services for $3,700 in cash and $1,500 on credit. (Use a compound entry.) 15 Returned damaged supplies for a cash refund of $320. 18 Purchased a computer for $2,600 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1005 for a $1,550 down payment, with the balance payable in 30 days. (Use one compound entry.) 20 Issued Check 1006 for $7100 to Office Furniture Mart, Inc., as payment on account for Invoice 6704. 26 Performed services for $4,000 on credit. 27 Paid $285 for monthly telephone bill: issued Check. 1007. 30 Received $3,300 in cash from credit customers. 30 Mailed Check 1008 to pay the monthly utility bill of $360. 30 Issued Checks 1009-1011 for $7,600 for salaries. 1. Journalize the above transactions,

Answer 1

Satillo Richey Journal entries Date Accounts 1-Oct Cash Satillo Richey, Capital Credit Debit $ 52,000 $ 52,000 $ 2,600 2-OctRent Expense Cash $ 2,600 5-Oct $ 14,200 Office Equipment Accounts Payable $ 14,200 6-Oct Art Equipment Cash $ 2,800 $ 2,800 7-Oct $ 1,150 Supplies Cash $ 1,150 $ 520 10-Oct Office Cleaning Expense Cash $ 520 12-Oct Cash Accounts Receivable Fees Income $ $ 3,700 1,500 $ 5,200 $ 320 15-Oct Cash Supplies $ 320 $ 2,600 18-Oct Office Equipment Cash Accounts Payable $ $ 1,550 1,050 $ 7,100 20-Oct Accounts Payable Cash $ 7,100 $ 4,000 26-Oct Accounts Receivable Fees Income $ 4,000 $ 285 27-Oct Telephone Expense Cash $ 285 $ 3,300 30-Oct Cash Accounts Receivable $ 3,300 $ 360 30-Oct Utilities Expense Cash $ 360 $ 7,600 30-Oct Salaries Expense Cash $ 7,600

Balance Date Debit Credit Balance Accounts Receivable 12-Oct $ 1,500 $ 1,500 26-Oct $ 4,000 $ 5,500 30-Oct $ 3,300 $ 2,200 $ 2,200 Date Debit Credit Supplies 7-Oct $ 1,150 15-Oct $ 320 $ $ $ $ 1,150 830 830 830 Date Debit Credit Balance Office Equipment 5-Oct $14,200 $ 14,200 18-Oct $ 2,600 $ 16,800 $ 16,800 $ 16,800 Satillo Richey T Accounts Date Debit Credit Balance Cash 1-Oct $ 52,000 $ 52,000 2-Oct $ 2,600 $ 49,400 6-Oct $ 2,800 $ 46,600 7-Oct $ 1,150 $ 45,450 10-Oct $ 520 $ 44,930 12-Oct $ 3,700 $ 48,630 15-Oct $ 320 $ 48,950 18-Oct $ 1,550 $ 47,400 20-Oct $ 7,100 $ 40,300 27-Oct $ 285 $ 40,015 30-Oct $ 3,300 $ 43,315 30-Oct $ 360 $ 42,955 30-Oct $ 7,600 $ 35,355 Art Equipment 6-Oct $ 2,800 $ 2,800 $ 2,800 $ 2,800 Fees Income 12-Oct $ 5,200 $ 5,200 26-Oct $ 4,000 $ 9,200 Telephone Expense 27-Oct $ 285 $ 285 Accounts Payable 5-Oct $ 14,200 $ 14,200 18-Oct $ 1,050 $ 15,250 20-Oct $ 7,100 $ 8,150 Office Cleaning Expense 10-Oct $ 520 $ 520 $ 520 Utilities Expense 30-Oct $ 360 $ 360 Satillo Richey, Capital 1-Oct $ 52,000 $ 52,000 $ 52,000 $ 52,000 Rent Expense 2-Oct $ 2,600 $ 2,600 $ 2,600 Satillo Richey, Drawing $ $ $ Salaries Expense 30-Oct $ 7,600 $ $ - - - 7,600 7,600

Balance in Account 202 - Accounts Payable = $8,150

Satillo Richey Account Names Cash Accounts Receivable Supplies Office Equipment Art Equipment Accounts Payable Satillo Richey, Capital Satillo Richey, Drawing Fees Income Office Cleaning Expense Rent Expense Salaries Expense Telephone Expense Utilities Expense Totals Trial Balance Debit Credit 35,355 2,200 830 16,800 2,800 8,150 52,000 9,200 520 2,600 7,600 285 360 69,350 69,350