Question

Services, Inc. a firm who provides pest control services to customers. Identify the appropriate account to debit and credit for each of the following transactions April 1. Vamonos Pest Services, Inc. paid $2,000 rent for the month of April. April 1st Select $2.000 Select $2.000 April 1. Vamonos Pest Services, Inc. provided pest control services to customers for $12.000. April 1st Select) $12.000 Select) $12,000 April 3 - Vamonos Pest Services, Inc. purchased supplies on account for $3.200. April 3rd Select $3,200 [Select] $3.200 April 4 - Vamonos Pest Services, Inc, borrowed $80,000 from Albuquerque National Bank, signing a 9% note requiring interest and principal to be paid in six months. April 4th Select $80.000 Select) $80,000

Answer 1

Journal Entries will be as follows:

Date Account and explanations Debit Credit $2,000 April. 01 Rent Expenses Cash (To record the payment of Rent Expenses) $2,000 $12,000 April. 01 Cash/Bank Revenue-Services (To record the revenue from services) $12,000 $3,200 April. 03 Supplies Accounts Payable (To record the purchase of supplies) $3,200 $80,000 April. 04 Cash/Bank 9% Note Payable (To record the borrowings from bank) $80,000 $100,000 April. 07 Cash/Bank Common Stock (To record the issuance of common stock) $100,000 April. 13 Accounts Receivables $42,000 Revenue-Services (To record the revenue from services on account) $42,000

April. 17 Salaries and Wages $9,700 Cash (To record the payment of salaries and wages) $9,700 $70,000 April. 18 Cash/Bank Advance from Customer (To record the receipt of advance) $70,000 April. 20 Accounts Payable $2,500 Cash (To record the payment of accounts payables) $2,500 April. 24 Cash/Bank $14,000 Accounts Receivables (To record the receipt of accounts receivables) $14,000