Question

Transactions Innovative Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Eamed, Rent Expense, Advertising Expense, Utilities Expense, Miscellaneous Expense. Journalize the following selected transactions for October 20Y2 in a two-column journal. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank Oct. 1. Paid rent for the month, $2,500. 4. Pald advertising expense, $1,000 5. Paid cash for supplies, $1,800. 6. Purchased office equipment on account, $11,500. 12. Received cash from customers on account, $7,500. 20. Paid creditor on account, $2,700. 27. Paid cash for miscellaneous expenses, $700. 30. Paid telephone bill for the month, $475. 31. Fees earned and billed to customers for the month, $42,400. 31. Paid electricity bill for the month, $900. 31. Paid dividends, $1,500.

Answer 1

Journal entries

Date	General Journal	Debit	Credit
Oct 1	Rent expense	2500
	Cash		2500
Oct 4	Advertising expense	1000
	Cash		1000
Oct 5	Supplies	1800
	Cash		1800
Oct 6	Office equipment	11500
	Account payable		11500
Oct 12	Account receivable	7500
	Fees earned		7500
Oct 20	Account payable	2700
	Cash		2700
Oct 27	Miscellaneous expense	700
	Cash		700
Oct 30	Utilities expense	475
	Cash		475
Oct 31	Account receivable	2400
	Fees earned		2400
Oct 31	Utilities expense	900
	Cash		900
Oct 31	Dividend	1500
	Cash		1500