Question

22

Innovative Consulting Co, has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Miscellaneous Expense. Journalize the following selected transactions for October 20Y2 in a two-column journal. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank. Oct. 1. Paid rent for the month, $2,800 3. Paid advertising expense, $1,810 S. Paid cash for supplies, $780. 6. Purchased office equipment on account, $11,900 12. Received cash from customers on account,$3,890 20. Paid creditor on account, $1,140 30. Paid telephone bill for the month, $180 31. Fees earned and billed to customers for the month, $25,900 31. Paid electricity bill for the month, $310 31. Paid dividends, $2,000. 20Y2 Oct. 1 Oct. 3

Answer 1

Journalize the transactions as follows: Date Accounts and explanations Debit Credit Oct.1 Rent expenses $2,800 Cash $2,800 $1,810 Oct.3 Advertising expenses Cash $1.810 $780 Oct.5 Supplies Cash $780 $11.900 Oct.6 Office equipment Accounts payable $11,900 $3,8901 Oct.12 Cash Accounts receivable $3,890 $1,140 Oct.20 Accounts payable Cash $1,140 $490 Oct.27 Misc. expenses Cash $490 $180 Oct 30 Utilities expenses Cash $180 $25,900 Oct.31 Accounts receivable Fees earned $25,900 $310 Oct.31 Utilities expenses Cash $310 $2,000 Oct.31 Dividends cash $2,000

Answer 2