Question

11) Larry Matt completed these transactions during December of the current year: Dec. 1 Began a financial services practice by investing $15,000 cash and office equipment with a $5,000 value. 2 Purchased $1,200 of office equipment on credit. 3 Purchased $300 of office supplies on credit. 4 Completed work for a client and immediately received payment of $900 cash. 8 Completed work for Precept Paper Co. on credit, $1,700. 10 Paid for the supplies purchased on credit on December 3. 14 Paid for the annual $960 premium on an insurance policy. 18 Received payment in full from Precept Paper Co. for the work completed on December 8. 27 Larry withdrew $650 cash from the business to pay personal Principles of Accounting Fall 2020 No. 1 3 | P a g e expenses. 30 Paid $175 cash for the December utility bills. 30 Received $2,000 in advance from a client for services to be performed next year. Prepare general journal entries to record these transactions.

Answer 1

Date	Account Titles	Debit $	Credit $
Dec.1	Cash	15,000
	Office Equipment	5,000
	Larry Matt, Capital		20,000
Dec.2	Office Equipment	1,200
	Accounts Payable		1,200
Dec.3	Supplies	300
	Accounts Payable		300
Dec.4	Cash	900
	Service Revenue		900
Dec.8	Accounts Receivable	1,700
	Service Revenue		1,700
Dec.10	Accounts Payable	300
	Cash		300
Dec.14	Prepaid Insurance	960
	Cash		960
Dec.18	Cash	1,700
	Accounts Receivable		1,700
Dec.27	Larry Matt, Drawings	650
	Cash		650
Dec.30	Utilities Expense	175
	Cash		175
Dec.30	Cash	2,000
	Unearned Service Revenue		2,000