Question

Question 4 of 6 -/S View Policies Current Attempt in Progress On April 1, Larkspur, Inc. began operations. The following transactions were completed during the month 1 2. 3. 4 5. 6 7 Issued common stock for $18.200 cash Obtained a bank loan for $5,300 by issuing a note payable. Paid $8,400 cash to buy equipment Paid $900 cash for April othcerent. Paid $1.100 for supplies. Purchased $460 of advertising in the Daily Herold, on account. Performed services for $13,700: cash of $1,520 was received from customers, and the balance of $12,180 was billed to customers on account Pald $300 cash dividend to stockholders. Pald the utility bill for the month $1,520. Pald Daily Herald the amount due in transaction (6) Paid $30 of interest on the bank loan obtained in transaction (2) Paid employees salaries. $4,860 Received 59,120 cash from customs billed in transaction (7) Pald income tax. 51.140 8 9 10 11 12 13 14 Journalize the transactions. (If no entry is required, select "No Entry for the account titles and enter for the amounts Credit account tities are automatically indented when amount is entered. Do not indent manually) No. Account Titles and Explanation 1. Common Stock Debit Credit 18200 Casti 18200 2 Accounts Payable 5300 rch

Answer 1

1) Cash A/ C Dr. 18200

To common stock A/ C. 18200

2) Cash A/ C Dr. 5300

To note payable A/ C. 5300

3) Equipment A/C Dr. 8400

To cash A/C. 8400

4) Rent Expense(office rent) A/ C Dr. 900

To cash A/ C. 900

5) Supplies A /C Dr. 1100

To Cash A/C. 1100

6) Advertising Expense A/ C Dr. 460

To Account payable A/ C. 460

7) Cash A /C Dr. 1520

Account receivable A/ C Dr. 12180

To Service revenue A /C. 13700

8) Dividend A /C Dr. 300

To Cash A /C. 300

9) Utilities Expense A/ C Dr. 1520

To cash A/ C. 1520

10) Account payable A /C Dr. 460

To Cash A/ C. 460

11) Interest Expense A/ C Dr. 30

To Cash A /C. 30

12) Salaries and Wages Expense A/ C Dr. 4860

To cash A/C. 4860

13) Cash A /C Dr. 9120

To Account receivables A/ C. 9120

14) Income tax Expense A/C Dr. 1140

To Cash A /C. 1140