Question

Prepare journal entries on the General Journal of Stone Inc. for the following transactions.

Notes: Read carefully and follow strictly so that Bb can grade you correctly!

1. Just write down the account title and numbers for each transaction (use comma in numbers, one thousand is 1,000, not 1000. NO $ sign).

e.g. Cash        1,000

           Sales           1,000

2. Always Dr. first, then Cr.

2. Use and copy accurately only the following account names (not case sensitive): Cash, Acc/Rec, Notes/Rec, Acc/Payable, Notes/Payable, Equipment, Service Revenue, CGS, Prepaid Insurance, Wages Expense, Common Stock.

1. Sold capital stock for $6,000 cash.

            Account       Dr.

                        Account       Cr.

2. Borrowed $5,000 from Bank One on a 3-month note.

Account - Dr. -

                        Account - Cr. -

3. Purchased repair tools on account for $950.

Account- Dr. -

                        Account- Cr. -

4. Performed repair service for $1,000. Received $250 cash and allowed the reminder to go on account.

Account- Dr. -

Account - Dr. -

                        Account- Cr.-

5. Paid $2,400 for a one-year insurance policy.

Account - Dr. -

                        Account - Cr. -

6. Paid wages of $500.

Account- Dr. -

                        Account - Cr. -

  

Answer 1

Solution:
	Journal Entries
	Transaction	Accounts	Debit	Credit
	1	Cash	$                       6,000
		Common Stock		$                        6,000
		(To record the issuance of common stock)
	2	Cash	$                       5,000
		Notes Payable		$                        5,000
		(To record the short term laon taken from bank)
	3	Equipment	$                          950
		Account Payable		$                            950
		(To record the purchase tools on account)
	4	Cash	$                          250
		Account Receivable	$                          750
		Service Revenue		$                        1,000
		(To record the service revenue)
	5	Prepaid Insurance	$                       2,400
		Cash		$                        2,400
		(To record the purchase of insurance policy)
	6	Wages Expenses	$                          500
		Cash		$                            500
		(To record the payment of wages)