Question

Question 25 On April 1. Marin Inc. began operations. The following transactions were completed during the month. 1. Stockholders invested $18,700 in the business in exchange for common stock 2. Obtained a bank loan for $5,500 by issuing a note payable. 3. Paid $8,600 cash to buy equipment. 4. Paid $900 cash for April office rent. 5. Paid $1,150 for supplies. 6. Purchased $470 of advertising in the Daily Herald, on account. 7. Performed services for $14,000: cash of $1.560 was received from customers, and the balance of $12.440 was billed to customers on account 8. Paid $310 dividend to stockholders 9. Paid the utility bill for the month, $1,560 10. Paid Daily Herald the amount due in transaction (6) 11. Paid $30 of interest on the bank loan obtained in transaction (2) 12. Paid empleyees' sailaries and wages $4.990 13. Received $9,360 cash from customers billed in transaction (7) Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

Journal entry :

No	account and explanation	debit	Credit
1	Cash	18700
	Common Stock		18700
	(To record common Stock)
2	Cash	5500
	Notes payable		5500
	(To record bank loan)
3	Equipment	8600
	Cash		8600
	(To record buy equipment)
4	Office rent expense	900
	Cash		900
	(To record rent paid)
5	Supplies	1150
	Cash		1150
	(To record supplies purchased)
6	Advertising expense	470
	Advertising payable		470
	(To record advertising)
7	Cash	1560
	Account receivable	12440
	Service revenue		14400
	(To record service revenue)
8	Dividend	310
	Cash		310
	(To record dividend paid)
9	Utilities expense	1560
	Cash		1560
	(To record utilities paid)
10	Advertising payable	470
	Cash		470
	(To record amount paid)
11	Interest expense	30
	Cash		30
	(To record interest paid)
12	Salaries and wages expense	4990
	Cash		4990
	(To record salaries and wages paid)
13	Cash	9360
	Account receivable		9360
	(To record amount received)