Question

Journal Entries Rocky Mountain Tours Co. is a travel agency. The nine transactions recorded by Rocky Mountain Tours during June 20Y2, its first month of operations, are indicated in the following T accounts: Cash Equipment (3) 15,000 Dividends (9) 1,500 (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 (6) 6,000(3) 10,000 Service Revenue (5) 20,500 (5) 20,500 (7) 13,100 Supplies (2) 4,000 (8) 2,200 Common Stock (1) 40,000 ) Operating Expenses (4) 6,175 (8) 2,200 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. (1) Cash 40,000 Common Stock 40,000 (2) Supplies х Accounts Payable x х х (3) Accounts Payable x Common Stock x Dividends x х (4) Service Revenue x х Operating Expenses X X (5) Accounts Payable x 00000000000000000 i bo DVD II II II II II II (6) Common Stock x (7) Dividends x (8) Service Revenue x (9) Operating Expenses x

Answer 1

Credit Debit 40,000 $ Transaction General Journal 1 Cash Common Stock (To record issue of common stock for cash) $ 40,000 2 $ 4,000 Supplies Cash (To record office supplies purchased for cash) $ 4,000 3 Equipment $ 15,000 Cash $ Accounts Payable $ (To record equipment purchased partially cash and balance on account) 5,000 10,000 4 $ 6,175 Operating expenses Cash (To record operating expense paid in cash) $ 6,175 5 $ 20,500 Accounts Receivable Service Revenue (To record services billed) $ 20,500 6 $ 6,000 Accounts Payable Cash (To record cash paid on account) $ 6,000 7 $ $ 13,100 Cash Accounts Receivable (To record cash received on account) $ 13,100 8 $ 2,200 Operating expenses Supplies (To record supplies consumed) $ 2,200 9 $ 1,500 Dividends Cash (To record dividend paid in cash) $ 1,500