Question

prepare Journal entries to record each of the events listed

Question 2 Sunland Services was formed on May 1, 2020. The following transactions took place during the first month. Transactions on May 1: 1. Jay Bradford Invested $40,000 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 $3,500 per month. 3. Signed a 2-year rental agreement on a warehouse; paid $21,0 cash in advance for the first year. 4. Purchased furniture and equipment costing $32,200. A cash payment of $12,000 was made immediately; the remainder will be paid in 6 months. 5. Paid $1,600 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 $20,200-$8,200 cash and $12,000 on account. 9. Pald $400 to suppliers for accounts payable due 10. Received $3,000 from customers in payment of accounts receivable. 11. Received utility bills in the amount of $300, to be paid next month. 12. Paid the monthly salaries of the two employees, totaling $7,000. (a) Prepare journal entries to record each of the events listed. (Credit account titles are automatically indented when amount is entered. Do not indent no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles Debit Credit

Answer 1

Answer:

Transaction	Account title and Explanation	Debit	Credit
1	Cash	$40,000
	Jay BradFord, Capital		$40,000
	[To record investment in business]
2	No Entry
3	Prepaid rent	$21,000
	Cash		$21,000
	[To record rent paid in advance]
4	Furniture and Equipment	$32,200
	Cash		$12,000
	Accounts payable		$20,200
	[To record purchase of furniture and equipment]
5	Prepaid insurance	$1,600
	Cash		$1,600
	[To record payment of insurance]
6	Office supplies	$500
	Cash		$500
	[To record purchase of office supplies]
7	Office supplies	$1,500
	Accounts payable		$1,500
	[To record purchase of office supplies on account]
8	Cash	$8,200
	Accounts receivable	$12,000
	Revenue		$20,200
	[To record revenues]
9	Accounts payable	$400
	Cash		$400
	[To record cash paid for accounts payable]
10	Cash	$3,000
	Accounts receivable		$3,000
	[To record collections from customers]
11	Utilities expense	$300
	Utilities payable		$300
	[To record accrued utilities expense]
12	Salaries expense	$7,000
	Cash		$7,000
	[To record payment of salaries]