Question

Post the journal entries to T-account from

Swifty Services was formed on May 1, 2020. The following transactions took place during the first month.

Transactions on May 1:
1.		Jay BradFord invested $41,000 cash in the company, as its sole owner.
2.		Hired two employees to work in the warehouse. They will each be paid a salary of $2,600 per month.
3.		Signed a 2-year rental agreement on a warehouse; paid $21,000 cash in advance for the first year.
4.		Purchased furniture and equipment costing $28,600. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months.
5.		Paid $2,000 cash for a one-year insurance policy on the furniture and equipment.
Transactions during the remainder of the month:
6.		Purchased basic office supplies for $500 cash.
7.		Purchased more office supplies for $1,500 on account.
8.		Total revenues earned were $18,600—$7,600 cash and $11,000 on account.
9.		Paid $500 to suppliers for accounts payable due.
10.		Received $3,100 from customers in payment of accounts receivable.
11.		Received utility bills in the amount of $400, to be paid next month.
12.		Paid the monthly salaries of the two employees, totaling $5,200.

Answer 1

Accounts receivable 8 11,000 3,100 10 Cash 41,000 7,600 3,100 21,000 10,000 2,000 500 500 5,200 End. Bal. 12,500 End. Bal. 7,900 Prepaid insurance 2,000 Supplies 500 1,500 2,000 End. Bal. End. Bal. 2,000 3 End. Bal. Prepaid rent 21,000 21,000 4 End. Bal. Equipment 28,600 28,600 Accounts payable 500 18,600 1,500 Owners' capital 41,000 41,000 End. Bal. 400 20,000 End. Bal.

Service revenue | 18,600 | 18,600 End. Bal. Salaries and wages expense 12 5,200 End. Bal. 5,200 11 Utilities expense 400 400 End. Bal.