Question

Prepare journal entries for the transactions below. A company entered into the following transactions during April....

Prepare journal entries for the transactions below.

A company entered into the following transactions during April. This is the first month of their operation.

  1. April 1st: Signed a lease and made a payment of $4,500 to the landlord comprised of three month’s rent covering April, May, and June.
  2. April 3rd: Purchased equipment on account for $35,000.
  3. April 4th: Purchased supplies for $2,000, paid with cash.
  4. April 10th: Performed services and sent a bill of $57,000 to a customer.
  5. April 15th: Received a payment of $24,000 for services to be performed in May.
  6. April 20th: Collected $14,000 from the customer billed on April 10th.
  7. April 21st: Made a $15,000 payment on account for equipment that was purchased on April 3rd.
  8. April 30th: Received bills for the current month from telephone and electricity companies totaling $380; payments will be made next month.
  9. April 30th: Paid employees $11,000 for work done during the month.

J.    April 30th: Physical count of supplies shows the supplies bought on April 4th only have $400 worth left.

K. April 30th: Adjusted the rent expense (see transaction A).

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Journal

Date

Account Title and Explanation

Debit

Credit

A APril 1 Prepaid rent 4,500
Cash 4,500
B APril 3 Equipment 35,000
Accounts payable 35,000
C APril 4 Supplies 2,000
Cash 2,000
D APril 10 Accounts receivable 57,000
Service revenue 57,000
E APril 15 Cash 24,000
Unearned service revenue 24,000
F APril 20 Cash 14,000
Accounts receivable 14,000
G APril 21 Accounts payable 15,000
Cash 15,000
H APril 30 Utilities expense 380
Utilities payable 380
I APril 30 salaries expense 11,000
Cash 11,000
J APril 30 Supplies expense 1,600
Supplies 1,600
K APril 30 Rent expense 1,500
Prepaid rent 1,500

Supplies purchased = $2,000

Ending supplies = $400

Supplies expense =  Supplies purchased - Ending supplies

= 2,000 - 400

= $1,600

Rent expense for 3 months = $4,500

Rent expense for 1 month = 4,500 x 1/3

= $1,500

Add a comment
Know the answer?
Add Answer to:
Prepare journal entries for the transactions below. A company entered into the following transactions during April....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 3. During April Kelly Consulting entered into the following transactions, Prepare journal entries for them. Apr....

    3. During April Kelly Consulting entered into the following transactions, Prepare journal entries for them. Apr. 1. The following assets were received from Kelly Pitney: cash $13100; accounts receivable, $3,000; supplies, $1,400; and office equipment $12,500. 1. Paid three months' rent on a lease rental contract, $4800; 2. Paid the premiums on property and casualty insurance polices,S1800 4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees. $5,000. 5. Purchased...

  • D Question 7 24 pts Prepare journal entries for each activity listed below. If no transaction...

    D Question 7 24 pts Prepare journal entries for each activity listed below. If no transaction is necessary, simply write, "No JE necessary". Make sure each debit and credit are clearly labeled, including the dollar amount. Journal entry format example: The company received cash for a sale in the amount of $100. DR Cash 100 CR Revenue 100 1. The company purchased office equipment for $70,000, paying $25,000 in cash and signing a 30-day note payable for the remainder. 2....

  • Prepare journal entries for the following transactions that occurred during 2017. May 1 Purchased equipment on...

    Prepare journal entries for the following transactions that occurred during 2017. May 1 Purchased equipment on account $500 2 Paid for the equipment purchased on may1 3 Purchased supplies for the cats $100 4 Paid wages to employees $2,000 5 Performed services for a client and collected cash $750 6 Did work for a customer on credit $2,500 7 Collected the amount owing from the customer of may 6.

  • ABC Services, Inc. is the company you started on December 1, 2019. The following transactions occurred...

    ABC Services, Inc. is the company you started on December 1, 2019. The following transactions occurred during the month of December 2019: 1 . The business was started with a $10,000 capital investment from the owner and sole shareholder on December l, 2019. Additional business funding of $10,000 was obtained from a bank 'loan the same day. (90 day note) 2. Rent of $6,000 for the first 3 months was required which included rent of $2,000 for the month of...

  • April Transactions Date Transaction Description April 1 Started a landscaping business by making a $50,000 deposit...

    April Transactions Date Transaction Description April 1 Started a landscaping business by making a $50,000 deposit in a company bank account, in exchange for 5,000 shares of $10 par value common stock. April 1 Purchased insurance for the year and paid $3,600 cash. April 1 Paid monthly rental of $2,500 cash on a warehouse to store the landscaping equipment. April 3 Purchased landscaping equipment from Toro for $15,000, paying a downpayment of $10,000 cash, and $5,000 on account. April 5...

  • Brief Exercise 2-32 (Algorithmic) Journalize Transactions Galle Inc. entered into the following transactions during January. a....

    Brief Exercise 2-32 (Algorithmic) Journalize Transactions Galle Inc. entered into the following transactions during January. a. January 1: Borrowed $57,000 from First Street Bank by signing a note payable. b. January 4: Purchased $25,000 of equipment for cash. C. January 6: Paid $500 to landlord for rent for January. d. January 15: Performed services for customers on account, $41,800. e. January 25: Collected $3,000 from customers for services performed in Transaction d. f. January 30: Paid salaries of $7,500 for...

  • Prepare April Journal Entries as T accounts and Regular Journal entries. Don’t forget descriptions and date....

    Prepare April Journal Entries as T accounts and Regular Journal entries. Don’t forget descriptions and date. JTT is a licensed CPA. During the first month of operations of her business, the following events and transactions occurred. a) April 2, Invested $73,600 cash and equipment valued at $32,200 in the business. b) April 2, Hired a secretary-receptionist at a salary of $667 per week, payable monthly. c) April 3, Purchased supplies on account $1,610. (Debit an asset account.) d) April 7,...

  • Prepare journal entries for the chapter two illustrative problem on page 84. Only prepare journal entries....

    Prepare journal entries for the chapter two illustrative problem on page 84. Only prepare journal entries. utive Problem J. F. Outz, M.D., has been practicing as a cardiologist for three years. During April 2018, Outz completed the following transactions in her practice of cardiology: Apr. 1. Paid office rent for April, $800. 3. Purchased equipment on account, $2,100. 5. Received cash on account from patients, $3,150. 8. Purchased X-ray film and other supplies on account, $245. 9. One of the...

  • Recording Transactions: [201280Q2012220] Orange Company [the firm] was formed on April 30, Year 1, when five...

    Recording Transactions: [201280Q2012220] Orange Company [the firm] was formed on April 30, Year 1, when five owners each invested $10,000 cash. Also on April 30, Year 1, another person lent $60,000 to the firm to be repaid in full along with $6,000 in interest on April 30, Year 2 During Year 1, the firm purchased supplies inventory on account at a cost of $8,000. In Year 1, 90% of supplies purchased had been paid for. By the end of Year...

  • Listed are the February 2020 transactions for Sage Inc.. Using the journal entry template provided below,...

    Listed are the February 2020 transactions for Sage Inc.. Using the journal entry template provided below, prepare the journal entries: ⦁   Feb 1: Issued common shares in exchange for cash of $25,500 and equipment of $15,000. ⦁   Feb 1: Paid monthly utilities of $6,000. ⦁   Feb 5: Purchased office supplies of $3,250 on account. ⦁   Feb 10: Performed services of $5,000 on account. ⦁   Feb 12: Performed services of $12,000; received $8,000 in cash with the remainder on account. ⦁  ...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT