Question

D Question 7 24 pts Prepare journal entries for each activity listed below. If no transaction is necessary, simply write, "No JE necessary". Make sure each debit and credit are clearly labeled, including the dollar amount. Journal entry format example: The company received cash for a sale in the amount of $100. DR Cash 100 CR Revenue 100 1. The company purchased office equipment for $70,000, paying $25,000 in cash and signing a 30-day note payable for the remainder. 2. The company paid $500 cash for supplies that were purchased on account last month. 3. The company purchased two acres of land for $100,000, signing a 2-year note payable. 4. The company made a payment of $50,000 on its 2-year note. 5. Accepted $5,000 worth of customer orders for services to be performed next month; no cash collected and the orders are cancelable. 6. At the end of the month, the company made a payment of $45,000 to the landlord, which comprised of the current month's rent ($15,000) as well as the following 2 months ($30,000).

Answer 1

1. Dr office equipment. 70000

Cr cash. 25000

Cr Note payable 45000

2. Dr account payable 500

Cr cash 500

3. Dr land 100000

Cr note payable 100000

4. Dr. note payable 50000

Cr cash 50000

5. No JE necessary

6. Dr rent 15000

Dr advance for rent 30000

Cr Cash 45000