Question

Required information [The following information applies to the questions displayed below.) Eli owns an insurance office, while Olivia operates a maintenance service that provides basic custodial duties. For the month of May, the following transactions occurred. May 2 Olivia decides that she will need insurance for a one-day special event at the end of the month and pays Eli $160 in advance. May 5 Olivia provides maintenance services to Eli's insurance offices on account, $355. May 7 Eli borrows $360 from Olivia by signing a note. May 14 Olivia purchases maintenance supplies from Spot Corporation, paying cash of $130. May 19 Eli pays $355 to Olivia for maintenance services provided on May 5. May 25 Eli pays the utility bill for the month of May, $121. May 28 Olivia receives insurance services from Eli equaling the amount paid on May 2. May 31 Eli pays $360 to Olivia for money borrowed on May 7. quired: ecord transactions for Olivia's Maintenance Services. (If no entry is required for a transaction/event, select "No Journal Entry quired" in the first account field.) Answer is not complete. No General Journal Debit Credit Date May 02 1 160 Cash Deferred Revenue x 160 2 May 05 Repairs and Maintenance Expense 3 May 07 Cash x 360

Answer 1

1. In the books of Olivia Maintenance services:

Date	Account title and explanation	Debit	Credit
May 2	Prepaid insurance	$160
	Cash		$160
	[To record payment of insurance in advance]
May 5	Accounts receivable	$355
	Service revenue		$355
	[To record services peformed on account]
May 7	Notes receivable	$360
	Cash		$360
	[To record issuance of notes]
May 14	Supplies	$130
	Cash		$130
	[To record purchase of supplies for cash]
May 19	Cash	$355
	Accounts receivable		$355
	[To record collections from customers]
May 25	Utilities expense	$121
	Cash		$121
	[To record payment of utilities]
May 28	Insurance expense	$160
	Prepaid insurance		$160
	[To record insurance expense]
May 31	Cash	$360
	Notes receivable		$360
	[To record collection for the notes]

2.

ELI'S INSURANCE SERVICES							OLIVIA'S MAINTENANCE SERVICES
	Assets	=	Liabilities	+	Stockholders' Equity		Assets	=	Liabilities	+	Stockholders' Equity
May 2	$160		$160				($160)
							$160
5			$355		($355)		$355				$355
7	$360		$360				($360)
							$360
14							($130)
							$130
19	($355)		($355)				$355
							($355)
25	($121)				($121)
28			($160)		$160		($160)				($160)
31	($360)		($360)				$360
							($360)