Question

Problem 2-4A Record transactions (LO2-4) Jake owns a lawn maintenance company, and Luke owns a machine repair shop. For the month of July, the following transactions occurred. July 3 Jake provides lawn services to Luke's repair shop on account, $500. July 6 One of Jake's mowers malfunctions. Luke provides repair services to Jake on account, $450. July 9 Luke pays $500 to Jake for lawn services provided on July 3. July 14 Luke borrows $600 from Jake by signing a note. July 18 Jake purchases advertising in a local newspaper for the remainder of July and pays cash, $110. July 20 Jake pays $450 to Luke for services provided on July 6. July 27 Luke performs repair services for other customers for cash, $800. July 30 Luke pays employee salaries for the month, $300. July 31 Luke pays $600 to Jake for money borrowed on July 14. Required: Record the transactions for Jake's Lawn Maintenance Company. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 5 6 7 8 9 Jake provides lawn services to Luke's repair shop on account, $500. Note: Enter debits before credits. Date General Journal Debit Credit July 03 Record entry Clear entry View general journal

Answer 1

Journal Entries:

In the books of Jake's Lawn Maintenance Company

Date	Account title and Explanation	Debit	Credit
July 3	Accounts receivable	$500
	Service revenue		$500
	[To record services performed on account]
July 6	Repair expense	$450
	Accounts payable		$450
	[To record repair expense on account]
July 9	Cash	$500
	Accounts receivable		$500
	[To record collections from customers]
July 14	Notes receivable	$600
	Cash		$600
	[To record cash paid in exchange of notes]
July 18	Advertising expense	$110
	Cash		$110
	[To record payment of advertising expense]
July 20	Accounts payable	$450
	Cash		$450
	[To record cash paid for accounts payable]
July 27	No entry in Jake books
July 30	No entry in Jake books
July 31	Cash	$600
	Notes receivable		$600
	[To record cash received for Notes]