Question

3 Problem 1 12 points 2 points each journal entry) 4 The following tranactions occurred for Jones Company and recorded by the accountant, Paul Baxter 5 Jan 2- The company issued $40,000 in common stock. 5 Jan 3 - The company receives $8,000 cash for fees earned from customer 7 Jan. 4. Paul invoices customer on account for $4,000 for fees earned. 3 Jan. 5. The company recevices $300 from customer on their account 2_Jan. 8Paul Purchased $100 of supplies on account. 0 Jan. 7. The company paid dividends of $2,000 cash. 2_Journalize the transactions above. E-------------------------------- 5 Date Description Post Ref. Debit Page 1 Credit 8 9 la molto

Answer 1

Credit Date Jan 2 Debit 40,000 $ Account name Cash Common stock (To record issue of common stock) $ 40,000 Jan 3 $ 8,000 $ 8,000 Cash Fees earned (to record cash received for fees earned)

Jan 4 $ 4,000 $ 4,000 Accounts receivable Fees earned (to record fees earned and receivable from the customer) Jan 5 300 $ 300 Cash Accounts receivable (to record cash received from the customer) Jan 6 100 100 Supplies Accounts payable (to record supplies purchased on credit)

Jan 7 $ 2,000 $ 2,000 Dividends Cash (to record dividends paid to stockholders)

Basic account type Increase Decrease Specific accounts in the question Assets Debit | Credit Cash, Supplies, Accounts receivable Liabilities Credit Debit Accounts payable Equity Credit Debit Common Stock Income Credit Debit Fees earned Expense Debit Credit

• Supplies are stock of consumables such as printer cartridges, cleaning supplies, etc. They are written off as supplies expense once they are consumed. The entry:
  • 
    Date Debit Credit Account name Supplies expense Supplies (To record using of supplies) *amount of supplies used up
    
• Dividends are reduced from the retained earnings.