Question

Cengage learning eBook Show Me How Calculator Transactions Innovative Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Miscellaneous Expense. Journalize the following selected transactions for October 2012 in a two-column joumal. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank. Oct. 1. Poid rent for the month, $2,500. 4. Pald advertising expense, $1,000 5. Pald cash for supplies, $1,800. 6. Purchased office equipment on account, $11,500. 12. Received cash from customers on account, $7,500 20. Pald creditor on account, $2,700 27. Paid cash for miscellaneous expenses, $700. 30. Paid telephone bill for the month, $175. 31. Fees earned and billed to customers for the month, 542,400. 31. Paid electricity bill for the month, $900. 31. Paid dividends, $1,500 2012 Oct 1 Oct. 4

Answer 1

20Y2	1-Oct	rent expense			2,500
		cash				2,500
	4-Oct	Advertising expense			1,000
		cash				1,000
	5-Oct	Supplies			1,800
		cash				1,800
	6-Oct	office equipment			11,500
		accounts payable				11,500
	12-Oct	Cash			7,500
		accounts receivable				7,500
	20-Oct	Accounts payable			2,700
		cash				2,700
	27-Oct	Miscellaneous expense			700
		cash				700
	30-Oct	utilities expense			475
		cash				475
	31-Oct	Accounts receivable			42,400
		fees earned				42,400
	31-Oct	utilities expense			900
		cash				900
	31-Oct	dividends			1,500
		cash				1,500