Question

Journal Entries Rocky Mountain Tours Co. is a travel agency. The nine transactions recorded by Rocky Mountain Tours during June 2012, its first month of operations, are indicated in the following T accounts: Equipment (3) 15,000 Dividends (9) 1,500 Cash (1) 40,000|(2) 4,000 (7) 13,100 (3) 5,000 (4) 6,175 (6) 6,000 (9) 1,500 Accounts Receivable Accounts Payable Service Revenue (5) 20,500 (7) 13,100 (6) 6,000 (3) 10,000 (5) 20,500 Common Stock Operating Expenses Supplies (2) 4,000 (8) 2,200 (1) 40,000 (4) 6,1751 (8) 2.2001 Prepare the nine journal entries from which the postings were made. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank

Answer 1

Journal Particulars Date Debit Cash To Common stock Amount Credit Amount 40,000 40,000 4,000 2. Supplies 4,000 To cash 15,000 10,000 8. Equipment To Accounts payable To Cash 5,000 6, 175 4. f operating expenses 6, 175 To cash 20,500 20,500 Accounts Receivable. To Service Revenue 6,000 6. | Accounts payable 6,000 To Cash Cash 13,100 7 13100 To accounts Receivable

Journal Date Particulars Debit Credit Ancunt Amount 22,200 8. operating expenses To supplies 2,200 9. Dividents 1,500 To Cash , 1500