Question

1. a) Selected transactions for Garver Company during its first month in business are presented below. On the form provided on the following page, journalize these transactions. Omit explanations. Indicate "No entry" if appropriate. A chart of accounts is provided below: (5 points) Cash Office Supplies Accounts Receivable Prepaid Rent Prepaid Insurance Office Equipment Accounts Payable Notes Payable Unearned Service Revenue Common Stock Dividends Service Revenue Salaries Expense Rent Expense Utilities Expense Insurance Expense Sept. 1 Jo Garver invested $25,000 cash in the business in exchange for common stock. 2 Hired an administrative assistant at a monthly salary of $1,300. 3 Paid $500 in cash for the current month's rent. 4 Purchased $300 of office supplies on credit. 5 Purchased office equipment for $27,000 paying $6,000 in cash and and signing a 30-day, $21,000, note payable. 6 Paid $600 for a one-year insurance policy 11 Performed $3,900 of services for clients, collecting $1,000 cash and billing them for the remainder. 15 Received $900 in advance for work to be done next month. 25 Paid $7,000 cash on balance owed for equipment. 26 Performed services and received $1,500 from client. 27 Paid $200 cash on account for office supplies purchased on September 4. 28 Paid the administrative assistant $1,300 in salary for September. 29 Collected $1,200 from the clients from the September 11 transactions. 30 Received a bill for $600 for utilities for the current month. Payment will be made in October.

Answer 1

Journal entries

Date	General Journal	Debit	Credit
Sept 1	Cash	25000
	Common Stock		25000
Sept 2	No Journal entry
Sept 3	Rent expense	500
	Cash		500
Sept 4	Office supplies	300
	Account payable		300
Sept 5	Office equipment	27000
	Cash		6000
	Notes payable		21000
Sept 6	Prepaid insurance	600
	Cash		600
Sept 11	Cash	1000
	Account receivable	2900
	Service revenue		3900
Sept 15	Cash	900
	Unearned service revenue		900
Sept 25	Notes payable	7000
	Cash		7000
Sept 26	Account receivable	1500
	Service revenue		1500
Sept 27	Account payable	200
	Cash		200
Sept 28	Salary expense	1300
	Cash		1300
Sept 29	Cash	1200
	Account receivable		1200
Sep 30	Utilities expense	600
	Account payable		600