Question

B. Fischer started Fischer Company, a cleaning services firm, on April 1. April 1 B. Fischer invested $5,400 cash to begin the business in exchange for common stock. April 2 Paid $1,710 cash for six months' lease on a van for the business. April 3 Borrowed $6,000 cash from a bank and signed a note payable, agreeing to repay it in one year plus 10% interest. April 4 Purchased $3,300 in cleaning equipment; the company paid $1,500 cash with the remainder due within 30 days. April 5 Paid $2,580 cash for cleaning supplies. April 7 Paid $210 cash for advertisements to run in the area newspaper during April. April 21 Billed customers $2,100 for services performed. April 23 Paid $1,800 cash toward the account for cleaning equipment (see April 4). April 28 Collected $1,380 cash from customers on their accounts billed on April 21. April 29 Paid $600 cash for dividends. April 30 (a) Paid $1,650 cash for April wages. April 30 (b) Paid $597 cash for gasoline used during April. . 0 > > . + a. Prepare a journal entry for each transaction. Note: List any multiple debits or any multiple credits in alphabetical order by account name. Account Debit Credit April 1 Cash 5,400 0 Common Stock 0 5,400 Owner invested cash for stock April 2 Prepaid Van Lease 1,710 0 Cash 0 1,710 Paid six months' lease on van April 3 Cash 6,000 0 Notes Payable 0 6,000 Borrowed money from bank April 4 Equipment 3,300 Cash 0 1,500 Accounts Payable 0 1,800 Purchase of equipment April 5 Supplies 2,580 0 Cash 0 2,580 Purchase of supplies April 7 Advertising Expense 210 0 Cash 0 210 Payment for advertising April 21 Accounts Receivable 2,100 0 Service Fees Earned 0 2,100 Billed customers for services Accounts Payable 1,800 0 Cash 0 1,800 Payment on account Cash 1,380 0 . . . > . April 23 0 April 28

Answer 1

Fischer Company Accounts Receivable 2100 Apr-28 Apr-21 1380 Journal Enteries Date Particulars Apr-01 Cash Common Stock (Common stock issued) Debit in $ Credit in $ 5400 5400 Apr-01 Apr-03 Apr-28 1710 1500 2580 210 Bal 720 2100 2100 Cash 5400 Apr-02 6000 Apr-04 1380 Apr-05 Apr-07 Apr-23 Apr-29 Apr-30 Apr-30 Bal 12780 1800 1710 Apr-02 Prepaid Rent Cash (6 months lease paid) 1710 2100 600 1650 597 2133 12780 Service Revenue Apr-21 2100 21001 Bal 2100 6000 Apr-03 Cash Note Payable (Cash borrowed) 6000 Apr-29 Cash Dividend 600 Bal 600 Common Stock Apr-01 5400 5400 5400 600 600 Apr-04 Cleaning Equipment 3300 Bal Cash 1500 5400 5400 1800 Accounts Payable (Equipment purchased) Apr-30 Prepaid Rent 17101 Wages Expense 1650 Bal 1650 Apr-02 1650 1650 2580 Bal 1710 Apr-05 Cleaning Supplies Cash (Supplies purchased) 2580 17101 1710 Note Payable Apr-30 Gasoline expense 5971 Bal 597 210 Apr-03 6000 Apr-07 Advertisement Expense Cash (Expense paid) 597 597 210 Bal 6000 6000 6000 2100 Apr-21 Accounts Receivable Service Revenue (Services on account) 2100 Apr-04 Cleaning Equipment 3300 Bal 3300 3300 3300 1800 Apr-23 Accounts Payable Cash (Creditors paid) 1800 Accounts Payable 1800 Apr-04 Apr-23 1800 1380 Apr-28 Cash Accounts Receivable (Cash from debtors) 1380 1800 1800 600 Apr-05 Apr-29 Cash Dividend Cash (Dividends paid) Cleaning Supplies 2580 Bal 2580 600 2580 2580 1650 Apr-30 Wages Expense Cash (Expense paid) 1650 Apr-07 Advertisement Expense 2100 Bal 210) 210 210 597 Apr-30 Gasoline expense Cash (Expense paid) 597