Question

Please answer and explain the reasoning behind it.

PART III: Read Carefully and show all computations (for partial credit calculations). 26. Record the following transactions for the month of March in the financial statements effects template below. A) Collected $2,000 from a customer for a balance that was due on accounts receivable. B) Services were completed and billed to customers in March in the amount of $1,500 C) Paid $3,000 for rent for the months April, May, and June D) Received and paid March's utilities bill for $150 E) Paid last month's fuel bill for $100. It was recorded as an expense in February. F) Completed services totaling $8,000 for which only $3,000 in cash was received. Balance Sheet Income Statement Cash Earned Noncash Assets Contributed Capital Transaction Asset + Liabilities + + Capital Rev. Exp. . = Net Prepare journal entries for each of the above transactions:

Answer 1

	Cash asset	+	Noncash assets	=	Liabilities	+	Contributed capital	+	Earned capital	rev	-	Exp	=	Net income
1	2000		-2000
2			1500						1500	1500				1500
3	-3000		3000
4					150				-150			+150		-150
5	-100				-100
6	3000		5000						8000	8000				8000

Journal entries

No	General Journal	Debit	Credit
a	Cash	2000
	Account receivable		2000
b	Account receivable	1500
	Service revenue		1500
c	Prepaid rent	3000
	Cash		3000
d	Utilities expense	150
	Cash		150
e	Account payable	100
	Cash		100
f	Cash	3000
	Account receivable	5000
	Service revenue		8000