Question

Using the invoices, payroll data and the information above, complete Company A's books of original entry for January 2017.

1) Payment on Jan 1st, for a prepaid insurance policy, that covers the month Jan (Guardian insurance) $75

2) Payment on Jan 2nd, for business registration expense (to the city) $130

3) payment on Jan 2nd, to Staples for office supplies $319

4) Payment to Jack Ltd on Jan 3, for machinery $800

5) payment on Jan 5, to Tmax for internet and telephone connection $150

6) payment of $50 for miscellaneous expenses throughout January

7) Payment on Jan 20 to Heart Ltd (for utilities) $170

Answer 1

Journal Entries Date Account Title and Explaination Post. Debit Credit Ref. 75.00 1 Jan. 1 Prepaid Insurance Cash (To record Payment of prepaid insurance) 75.00 $ 130.00 2 Jan.2 Business Registration Expenses Cash (To record Payment of business registration expenses) 130.00 319.00 Jan.3 Office Supplies Cash (To record cash paid for office supplies) 319.00 800.00 4 Jan.3 Machinery Cash |(To record Payment for machinery purchased) 800.00

800.00 Jan.3 Machinery Cash (To record Payment for machinery purchased) $ 800.00 150.00 5 Jan.5 Telephone and Internet Expenses Cash |(To record Telephone and internet expense) 150.00 S 50.00 Miscellaneous Expenses Cash (To record Payment for Miscellaneous Expenses) IS 50.00 170.00 Jan. 20 Utilities Expense Cash (To record Utilities Expenses paid) $ 170.00