Question

Exercise 2-50 (Algorithmic) Journalizing Transactions Remington Communications has been providing cellular phone service for several years. During November and December, the following transactions occurred: Nov. 2 Remington received $2,000 for November phone service from Enrico Company. 6 Remington purchased $3,750 of supplies from Technology Associates on account. 10 Remington paid $5,650 to its hourly employees for their weekly wages. 15 Remington paid $3,750 to Technology Associates in full settlement of its account payable. 28 Remington paid $1,650 for utilities used during November. 30 Remington received a bill from Monticello Construction for $430 for repairs made to Remington's loading dock on November 15. Remington plans to pay the bill in early December. Dec. 10 Remington paid $430 to Monticello Construction to settle the repair bill received on November 30. Required: 1. Prepare a journal entry for each of the above transactions. Nov. 2 (Record revenue earned) 6 (Record purchase of supplies on account)

Answer 1

Credit Debit 2,000.00 2,000.00 3,750.00 3,750.00 5,650.00 5,650.00 1. Prepare a journal entry for each of the above transactions. Date General Journal 2nd Novemebr Bank Sundry Debtors (To record amount received from Enrico Company towards phone services) 6th November Supplies Technology Associates (To record supplies purchased on account) 10th November Wages Bank (To record payment of wages to employees) 15th November Technology Associates Bank (To record payment of $3,750 to Technology Associates) 28th November Utilities Bank (To record purchase of utilities) 30th November Repairs Repairs Payable (To record due of repairs expenses) 10th December Repairs Payable Bank (To record payment of Repairs Payable) 3,750.00 3,750.00 1,650.00 1,650.00 430.00 430.00 430.00 430.00 2. Conceptual Connection: What accounting principle did you apply in recording the November 10 transaction? Answer: Accrual principle