Question

Eestion 6 ot yet nswered Marked out of 200 Flag question WA Computer Corporation had the following opening account balances at the end of April: Cash $5000, Accounts receivable $6000, Accounts payable $2000, Common shares $5000 and Retained earnings $4000. It entered the following transactions during the mont of May. Prepare a journal entry in good format for the following: 1 Purchased equipment on account for $8000 2 Paid $1600 for rent for the month of May 3 Provided computer services for $3800 on account 4 Paid Sask Power $600 cash for utilities used in May 5 Borrowed $20,000 from the bank 6 Paid supplier for equipment purchased in transaction 1 7 Purchased a one year accident insurance policy for $1000 cash 8 Received $3000 cash in partial payment of the account owed in transaction 3 2 A B 1 INI E P 3 ! 5

Answer 1

Journal entries

No	General Journal	Debit	Credit
1	Equipment	8000
	Account payable		8000
2	Rent expense	1600
	Cash		1600
3	Account receivable	3800
	Service revenue		3800
4	Utilities expense	600
	Cash		600
5	Cash	20000
	Bank loan		20000
6	Account payable	8000
	Cash		8000
7	Prepaid insurance	1000
	Cash		1000
8	Cash	3000
	Account receivable		3000