Question

son 2 No Marks for Values et ered ed out of ag tion Elena Duvis is the owner of Island Services. The following transactions need to be recorded for her business Aug 1 Prepaid $3,360 of insurance for one year. Aug 2 Prepaid $3,000 of rent for three months. Aug 3 Received a maintenance bill for $510 which will be paid next month. Aug 4 Received $2,860 cash for services provided. Aug 7 Took out a loan from the bank for $8,000. Aug 10 Paid telephone expenses for the month with $260 cash Aug 12 Paid $440 cash to reduce the balance of accounts payable. Aug 31 Paid $10 of interest on the bank loan. Aug 31 Adjusted prepaid insurance for one month for $280. Aug 31 Depreciated equipment for $250. Aug 31 Adjusted prepaid rent for one month for $1,000 Required Journalize the transactions for Island Services Do not enter dollar signs or commas in the input boxes NOTE: Marks are only assigned to the account drop-down boxes. Date Account Title and Explanation Aug 1 Insurance Expense Debit Credit .

Answer 1

Answer:

Debit ($) 3360 Credit ($) 3360 3000 3000 510 510 2860 2860 8000 8000 260 Date Account title and explanation Aug-01 Prepaid insurance Cash (to record prepaid insurance paid) Aug-02 Prepaid rent Cash (to record prepaid rent paid) Aug-03 Maintenance expense Accounts payable (to record maintenance expense) Aug-04 Cash Service revenue (to record service revenue) Aug-07 Cash Bank loan (to record loan take n from bank) Aug-10 Telephone expense Cash (to record telephone expense) Aug-12 Accounts payable Cash (to record cash paid to accounts payables) Aug-31 Interest expense Cash (to record interest expense paid) Aug-31 Insurance expense Prepaid insurance (to record insurance expense) Aug-31 Depreciation expense Accumulated depreciation (to record depreciation expense) Aug-31 Rent expense Prepaid rent (to record rent expense 260 440 440 10 10 280 280 250 250 1000 1000

Note:

# All amounts are in Dollars ($), question specifically mentioned to not use '$' sign in entries, hence the '$' omitted in journal entries.

# Drop down list of accounts have not provided, however the entries are passed by normal using accounts. there may be use of different words in account title, eg. instead of maintenance expenses, can use the account Repair and maintenance expense and Bank loan can replace with Notes payable