Question

Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each of the above transactions, prepare accrual basis journal entries. (If no entry is required for a transaction/event, select Journal Entry Required in the first account field.) View transaction list View journal entry worksheet Debit Credit General Journal No Transaction 111.000 1 a 111.000 Cash Notes Payable (short-term) Required 2 > 3 of 4 SB < Prev Next > ere to search

Answer 1

Answers:

1.

No	Transaction	General Journal	Debit	Credit
1	a	Cash	111,000
		Note payable (short-term)		111,000
		To record note payable
2	b	Cash	6,800
		Accounts receivable	95,700
		Service revenue		102,500
		To record service revenue
3	c	Equipment	229,000
		Cash		229,000
		To record equipment purchase
4	d	Wages expense	2,200
		Cash		2,200
		To record wages expense
5	e	Cash	815
		Accounts receivable		815
		To record cash received from customer
6	f	Travel expense	4,650
		Cash		4,650
		To record travel expense
7	g	Accounts payable	8,650
		Cash		8,650
		To record payment to accounts payable
8	h	Utilities expense	24,500
		Cash		17,800
		Accounts payable		6,700
		To record utilities expense

2.

Preliminary Net income

71,150

Calculation:

1.

To prepare the journal entries, the amounts respective to transations are provided in the question. So there is no further calculation needed except for the transaction #b and #h.

Entry #2:

To record service revenue

Cash received = Service revenue - Acccounts receivable = 102,500 - 95,700 = 6,800

Entry #8:

To record utilities expense

Cash paid = Utilities expense - Acccounts payable = 24,500 - 17,800 = 6,700

2.

To calculate the preliminary net income, we need to prepare the income statement. For that the service revenue is provided in the transaction #b. Also the expenses are given in the transaction #d, #f and #h.

Income Statement
Service revenue	102,500
Expenses:
Wages expense	-2,200
Travel expense	-4,650
Utilities expense	-24,500
Total Expenses	-31,350
Net Income	$71,150