Question

The May transactions of Pina Colada Corp. were as follows. May 4 7 В 9 17 22 29 Paid $870 due for supplies previously purchased on account. Performed advisory services on account for $7,080. Purchased supplies for $810 on account. Purchased equipment for $2,790 in cash. Paid employees $740 in cash Received bill for equipment repairs of $840. Paid $1,200 for 12 months of Insurance policy. Coverage begins June 1. Journalize the transactions. If no entry is required, select "No Entry for the account titles and enter for the amounts Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem) Date Account Titles and explanation Debit Credit old 5870 do for supplies previously purchased on account 870 Ray 7 Performed advisory services on account for $7.00, 7,080

Answer 1

Journalizing the transactions:

Date	Account Titles and Explanation	Debit	Credit
May 4	Accounts payable	$870
	Cash		$870
	(To record the cash payment to payables)
May 7	Accounts Recievable	$7080
	Service Revenue		$7080
	(To record the advisory services on account)
May 8	Supplies	$810
	Accounts payable		$810
	(To record the purchase of supplies on account)
May 9	Equipment	$2790
	Cash		$2790
	(To record the purchase of equipment for cash)
May 17	wages expense	$740
	Cash		$740
	(To record the payment to employees)
May 22	Repairs expense	$840
	Notes payable		$849
	(To record the bill for repairs cost on equipment)
May 29	Prepaid insurance	$1200
	To cash		$1200
	(To record the payment for insurance policy)

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