Question

Katy Williams is the manager of Blue Light Arcade. The company provides entertainment for parties and special events. a. Blue Light Arcade received $54 cash on account for a birthday party held two months ago. b. Agreed to hire a new employee at a monthly salary of $3,100. The employee starts work next month. c. Paid $2,100 for a table top hockey game purchased last month on account. d. Repaid a $5,100 bank loan that had been outstanding for six months. (Ignore interest.) e. The company purchased an air hockey table for $2,600, paying $1,200 cash and signing a short-term note for $1,400. Prepare journal entries for the above transactions relating to the year ended December 31. (If no entry is required for a transaction/event select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 5 > Blue Light Arcade received $54 cash on account for a birthday party held two months ago. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit a Record entry Clear entry View general journal

Answer 1

Solution - Item particulars Debit credit cash 54 accounts receivable 54 B) No Transaction The employee is yet to provide any service to the company . c) Accounts receivable 2100 210D D Cash Notes / Loan payable Cash 5100 5100 Equipment cash 2600 1200 Notes payable 1400

a) Transaction IDebit credir Account titles and explanation Equipment a 4100 4100 (b) cash To record the purchase of equipment) Inventory 7100 Accounts payable o record the Inventory purchased on accant) 7100 (C) 4100 (d) cash 4100 Notes payable To record the loan in the form of note payable) Account payable ( Isso cash To recood the payment for books pusthased on account) Note payable 4100 cash to record the repayment 155o e) 4100 of loan)