Question

Part 3: Journal Entries 20 Points Prepare Journal entries of the following transactions. A business is started by receiving $5,000 cash from the owner A business purchases land for $100,000 cash. A business purchases supplies for $200 on account. A business renders services to its cystomer and collects $900 cash. A business renders services to its customer for $350 on account. A business pays salary expense of $4,000 in cash. In a previous month, the business purchased supplies for $800 on account. Now the business makes a cash payment of $800 to the supplier. In a previous month, the business rendered services of $5,000 to a client on account. Now the business receives $5,000 cash from the client. At the end of the month, the business receives a bill for utility expenses of $800 incurred during the month. The business will pay the bill during the following month. At the end of the month, the business owner takes a withdrawal of $10,000

Answer 1

Date Debit Credit General Journal Account Titles and Explanation Cash Capital (To record the capital invested by owner) 5,000 5,000 100,000 Land Cash (To record the purchase of land on cash) 100,000 200 Supplies Accounts payable (To record the purchase of supplies on credit) 200 900 Cash Service revenue (To record the cash sales) 900 350 Accounts receivable Service revenue (To record the credit sales) 350 4,000 Salaries expense Cash (To record the cash paid for salaries expense) 4,000 8001 Accounts payable Cash (To record the payment made to creditors for supplies) 800 5,000 Cash Accounts receivable (To record the cash received from customers) 5,000 800 Utilities expense Utilities payable (To record the utilities expense accrued) 800 10,000 Drawings Cash (To record the capital withdrawn by the owner) 10,000 Please give likes for the work. Thanks & Regards.