Question

Please show T-Accounts as well.

JOURNAL ENTRIES -- Prepare the journal entries for the following activities. (5 points each) Sold office equipment for $700. The equipment originally cost $2,000 and has accumulated depreciation of $1,500. Sold merchandise on account for $2,000. Cost of the merchandise was $1,200. 3. Received advance payment of $3,000 for services to be provided next month. Purchased new office equipment costing $4,000 by paying $1,500 in cash and signing a note for the balance. Received payment from the customer for the sale in item 2 above. Paid $600 for three months of insurance coverage. Purchased $2,600 of inventory on account. Returned $200 of defective merchandise from the purchase in item 7 above, receiving a credit to our account Paid for the purchase in item 7 above, less the return in item 8. Received an invoice of $250 from the landscaping company for lawn care services for the month.

Answer 1

Journal entries:
Sl No.	Account titles and explanation					Debit	Credit
1	Cash					700
	Accumulated depreciation-Equipment					1500
	Gain on sale of equipment						200
	Equipment						2000
	(Office equipment sold)
2-a.	Accounts receivable					2000
	Sales						2000
	(Merchandise sold)
2-b.	Cost of goods sold					1200
	Merchandise inventory						1200
	(Cost of goods sold recorded)
3	Cash					3000
	Unearned revenue						3000
	(Advance received for services to be provided in
	next month)
4	Equipment					4000
	Cash						1500
	Note payable			(4000-1500)			2500
	(New equipment purchased)
5	Cash					2000
	Accounts receivable						2000
	(Cash received from customer)
6	Prepaid insurance					600
	Cash						600
	(3 months insurance paid )
7	Merchandise inventory					2600
	Accounts payable						2600
	(Purchased inventory)
8	Accounts payable					200
	Merchandise inventory						200
	(Returned defective merchandise)
9	Accounts payable			(2600-200)		2400
	Cash						2400
	(Paid to the supplier)
10	Maintenance expense					250
	Accounts payable						250
	(Lawn care service charges due for the month)
T-accounts:
	Cash					Accounts receivable
Ref.	Debit	Ref.	Credit		Ref.	Debit	Ref.	Credit
1	700	4	1500		2-a.	2000	5	2000
3	3000	6	600
5	2000	9	2400
	Prepaid insurance					Merchandise inventory
Ref.	Debit	Ref.	Credit		Ref.	Debit	Ref.	Credit
6	600				7	2600	2-b.	1200
							8	200
Accumulated depreciation-Equipment						Equipment
Ref.	Debit	Ref.	Credit		Ref.	Debit	Ref.	Credit
1	1500	Bal.	1500		Bal.	2000	2	2000
					4	4000
	Accounts payable					Unearned revenue
Ref.	Debit	Ref.	Credit		Ref.	Debit	Ref.	Credit
8	200	7	2600				3	3000
9	2400	10	250
	Note payable					Sales
Ref.	Debit	Ref.	Credit		Ref.	Debit	Ref.	Credit
		4	2500				2-a.	2000
	Gain on sale of equipment					Cost of goods sold
Ref.	Debit	Ref.	Credit		Ref.	Debit	Ref.	Credit
		1	200		2-b.	1200
	Maintenance expense
Ref.	Debit	Ref.	Credit
10	250