Question

Create a general journel entry using the following information:

During January 2018, the following transactions occur:

January	2		Purchase rental space for one year in advance, $6,600 ($550/month).
January	9		Purchase additional supplies on account, $3,700.
January	13		Provide services to customers on account, $25,700.
January	17		Receive cash in advance from customers for services to be provided in the future, $3,900.
January	20		Pay cash for salaries, $11,700.
January	22		Receive cash on accounts receivable, $24,300.
January	29		Pay cash on accounts payable, $4,200.

Answer 1

Date	Particulars	Dr. Amount	Cr. Amount
2nd January, 2018	Prepaid Rent…..dr	$6,000
	To Cash		6,000
	(Being rental space purchased for 1 yr)
9th January, 2018	Supplies……dr	$3,700
	To Accounts Payable		$3,700
	(Being purchase of additional supplies on account)
13th January, 2018	Accounts Receivable	$25,700
	To Service Revenue		$25,700
	(Being services provided on account)
17th January, 2018	Cash……….dr	$3,900
	To Unearned services revenue		$3,900
	(To record payment of cash for salaries)
20th January, 2018	Salaries expenses….dr	$11,700
	To Cash		$11,700
	(Being cash paid for salaries)
22nd January, 2018	Cash………dr	$24,800
	To Accounts Receivables		$24,800
	(Being record of cash received from accounts receivable)
29th January, 2018	Accounts Payable….dr	$4,200
	To Cash		$4,200
	(Being cash payment to accounts Payable)