Question

181. Record the following transactions. If an entry is not required, state "No Entry." (a) Started business by issuing 10,000 shares of common stock for $20,000. (b) Hired Rebecca as an administrative assistant, promising to pay her $2,000 every two week. (c) Rented a building for three years at $500 per month and paid six months' rent in advance. (d) Purchased equipment for $5,400 cash. (e) Purchased $1,800 of supplies on account. (f) Provided services to customers for $7,800 cash. (g) Paid employee salaries, $5,200. (h) Paid for supplies purchased in item (e). (i) Paid $800 for current advertising in a local newspaper. (1) Paid utility bill of $1,300 for the current month

Answer 1

Answer- Journal Entries as per following:

Credits Journal Entries Serial Particualrs a) Cash Account To Common Stock Account (Being, Record Issuance of 10000 Shares) Debit $ 20,000 20,000 b) No Entry c) 3,000 Prepaid Rent Account To Cash Account (Being, Paid six months rent in advance) 3,000 d) 5,400 Equipment Account To Cash Account (Being, Purchase Equipment for Cash) 5,400 e) 1,800 Supplies Account TO Accounts Payable Account (Being, Purchased Supplies on account) 1,800 f) 7,800 Cash Account To Service Revenue Account (Being, Provided Service to Customer) 7,800 g) 5,200 Salaries Account To Cash Account (Being, Paid Employee Salaries) 5,200 h) 1,800 Account Payable Account To Cash Account (Being, Paid for Supplies) 1,800 i) 800 Advertisement Account To Cash Account (Being, Advertisement Expenses paid) 800 j) 1,300 Utility Bill Account To Cash Account (Being, Utility bill Paid) 1,300