Question

due University Sample_APA Pape... H Heartland ECSI Academic Writer- Purdue University citing IS , 13 Help System Announcements Problem 2-03A a-c (Part Level Submission) Bramble Services was formed on May 1, 2020. The following transactions took place during the first month. Transactions on May 1: 1. Jay Bradford invested $39,000 cash in the company, as its sole owner 2. Hired two employees to work in the warehouse. They will each be paid a salary of $2,600 per month. 3. Signed a 2-year rental agreement on a warehouse; paid $20,000 cash in advance for the first year. 4. Purchased furniture and equipment costing $30,500. A cash payment of $10,000 was made immediately, the remainder will be paid in 6 months. S. Paid $1,800 cash for a one-year insurance policy on the furniture and equipment. Transactions during the remainder of the month: 6. Purchased basic office supplies for $400 cash. 7. Purchased more office supplies for $1,300 on account. 8. Total revenues earned were $20,500-$8,500 cash and $12,000 on account. 9. Paid $400 to suppliers for accounts payable due 10. Received $3,100 from customers in payment of accounts receivable, 11. Received utility bills in the amount of $400, to be paid next month. 12. Paid the monthly salaries of the two employees, totaling $5,200. (a) Your answer is correct. Prepare journal entries to record each of the events listed. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If No. Account Titles Debit Credit 1. Cash 39000 Owner's Capital 39000 2. No Entry

Answer 1

Owners Capital Account Receivable 12000 10 1 Cash 39000 8500 3 8 3100 39000 8 4 20000 10000 1800 400 10 3100 5 End Bal. 8900 End Bal. 39000 6 9 400 5200 12 4 6 Equipment 10000 20500 30500 Supplies 400 1300 1700 End Bal. 12800 4 7 End Bal. End Bal. 1 Prepaid rent 20000 20000 Utilities Expense Account Payable 400 4 End Bal. 9 400 20500 1300 11 End Bal. 400 7 11 End Bal. Prepaid insurance 1800 1800 5 400 21800 End Bal. Service Revenue 8 8500 Salaries and Wages Expense 12 5200 End Bal. 5200 8 12000 20500 End Bal.

Bramble Services Trial Balance May 31, 2020 Account Tittle Debit ($) Credit ($) Cash 12800 Account Receivable 8900 Prepaid rent 20000 Equipment 30500 Supplies 1700 Owners Capital 39000 Account Payable 21800 Service Revenue 20500 Prepaid insurance 1800 Salaries and Wages Expense 5200 Utilities Expense 400 Total 81300 81300

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