Question

leyPLUS Weygandt, Accounting Principles, Eighth Canadian Edition, Volume 1 Read, Study & Practice Assignment Gradebook ORION Downloadable eTextbook ment > Open Assignment IMENT RESOURCES hallenge - Bonus ment stion Score Results by Study Ive Question 1 Lee Chang opened Blossom's Window Washing on July 1, 2021. In July, the following transactions were completed: July 1 Invested $29,000 cash in the business, 1 Purchased a used truck for $25,200, paying $5,200 cash and signing a note payable for the balance. 1 Paid $2,800 on a one-year Insurance policy, effective July 1. 5 Billed customers $3,900 for cleaning services. 12 Purchased supplies for $2,060 on account. 18 Pald $3,000 for employee salaries. 25 Billed customers $9,900 for cleaning services. 28 Collected $3,900 from customers billed on July 5. 31 Paid $550 for repairs on the truck. 31 Withdrew $2,400 cash for personal use. (a) Journalize and post the July transactions to the general ledger. (Credit account titles are automatically indented when amount is en required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in

Answer 1

Cash Date Explanation Debit Credit Balance July. 1 Capital contribution by L Chang 29000 29000 July. 1 Purchase truck 5200 23800 July. 1 Prepaid insurance 2800 21000 July. 18 Paid salaries 3000 18000 July.28 Receipt from customers 3900 21900 July. 31 Repairs on truck 550 21350 July. 31 Cash for personal use 2400 18950 L. Chang Capital Date Explanation Debit Credit Balance July. 1 Capital contribution 29000 29000 Vehicle Date Explanation Debit Credit Balance July. 1 Purchase truck cash 5200 5200 July. 1 Notes Payable 20000 25200 Notes Payable Date Explanation Debit Credit Balance July. 1 Truck purchase 20000 20000

Prepaid insurance Date Explanation Debit Credit Balance July. 1 Insurance prepaid in cash 2800 2800 Account receivable Date Explanation Debit Credit Balance July. 5 Service revenue 3900 3900 July.25 Service revenue 9900 13800 July. 28 Cash receipt 39001 9900 Service Revenue Date Explanation Debit Credit Balance July. 5 Billed service 3900 3900 July. 25 Billed service 9900 13800 Supplies Date Explanation Debit Credit Balance July. 12 Purchase supplies 2060 2060 Account payable Date Explanation Debit Credit Balance July 2 Purchase supplies 2060 2060 Salaries expense Date Explanation Debit Credit Balance July. 18 Paid salaries 3000 3000

Balance 550 Repairs expense Date Explanation Debit Credit July. 31 Cash paid for repairs 550 Drawings Date Explanation Debit Credit July. 31 Drawings for personal use 2400 Balance 2400

credit 29000 20000 5200 2800 Journal Entries Date Accounts and Explanation Debit July. 1 Cash 29000 L Chang capital July. 1 Vehicle 25200 Notes payable Cash July. 1 Prepaid insurance 2800 Cash July.5 Account receivable 3900 Service revenue July. 12 Supplies 2060 Account payable July. 12 Salaries expense 3000 Cash July. 25 Account receivable 9900 Service revenue July. 28 Cash 3900 Account receivable July. 31 Repairs expense 550 Account receivable 3900 2060 3000 9900 3900 550