Question

Part II. Write Journal Entries in proper form for the following economic transactions: 1. Paid Insurance Expense of $1,200 for the current month. 2. Accrued Utilities Expense on account, $450. 3. Performed a service job and billed the client $135. 4. Purchased Equipment for $4,500, putting 15% down and financing the remaining amount with a 5% Note Payable due in 2 years. 5. Record the entry to show Equipment is being depreciated $1,000. 6. Accrued $5,600 of Wages expense at year end. 7. Rent expense is $500 per month. The company paid $1,500 for Rent consisting of the current month and the next two months. 8. Purchased $1,000 of Supplies Inventory at the beginning of the month which has previously been recorded. A physical count of Supplies Inventory shows a balance of $350 of supplies on hand. Write the adjusting journal entry. 9. Did a service job and immediately collected $2,340. 10. Paid the utilities expense accrued in JE 2 above.

Answer 1

Insweance Expense Cash Insurance Expense laid) $ 1.200 $ 1,200 2. Utilities Expense utilities Payonee cel (utilities Expenses unpaid) $ uso & uso 3 Accounts Receivable sowice Revenue (selices Pesspomed on Acoust) $135 $135 ce 의 " 노 Eauipment Cash Cusco y Isl.) Note Payable (Bf ) (Eauipment purchased) ce ci $ 4500 $ 900 $ 3600 $1000 Depreciation Expense Accuwlated Depreciaria - Faviprent (nepleciation charged ! De cu I loon $ Sooo $ 56oo ) coi 7. 6 6. wages Expense wages Payable (unpaid wages) 2 글 Rent Expense (500x) Prchaid Rent (500 x2) Cash (Rent Paid & Supplies Expense Sunneies (1000-350) (sunlies used). De co $ Soo $ lood & Soo IOAN $ 650 $ 650 co

q. Cash Seewice Revenue (Sewice revenue Carined) $2340 $2340 10. Utilities Payable Cash (utilities Expenses faids LATA & uso & uso