Question

Instructions Open a Taccount for each of the accounts below. Record the effects of the transactions in T accounts Afer all transactions are entered, determine the account balances Cash Accounts Receivable Supplies Equipment Accounts Payable Common Stock Dividends Service Revenue Rent Expense Telephone Expense Utilities Expense TransactionS a) Several individuals invested $100,000 cash in the business in exchange for common stock b) Issued a check to purchase supplies, $2,300. c) Paid rent for the month, $2,400. d) Purchased equipment on account, 550,000. e) Performed services for $8,000 cash. 0 Performed services for $12,200 on account g) Paid a creditor for $6,000 h) Paid the telephone bill, $500 i) Paid the u Research Services I STOCKHOLDERS EQUIT ASSETS

Answer 1

	Journal entries					T-account
date	explanation	debit	credit			cash
1-	cash	100000			common stock	100000	supplies	2300
	common stock		100000		service revenue	8000	rent expense	2400
							accounts payable	6000
2-	supplies	2300					telephone expense	500
	cash		2300				utilities expense	750
							balance	96050
3-	rent expense	2400				common stock
	cash		2400		balance	100000	cash	100000
4-	equipment	50000
	accounts payable		50000			supplies
					cash	2300	balance	2300
5-	cash	8000
	service revenue		8000
						rent expense
6-	accounts receivables	12000			cash	2400	balance	2400
	service revenue		12000
						equipment
7-	accounts payable	6000			accounts payable	50000	balance	50000
	cash
8-	telephone expense	500				accounts payable
	cash		500		cash	6000	equipment	50000
					balance	44000
9-	utilities expense	750
	cash		750			service revenue
					balance	20000	cash	8000
							accounts receivables	12000
						accounts receivables
					service revenue	12000	balance	12000
						telephone expense
					cash	500	balance	500
						utilities expense
					cash	750	balance	750