Question

1. Advertising costs, paid in cash, £1,024. 2. Additional supplies acquired on account £3,877. 3. Miscellaneous expenses, paid in cash, £1,932. 4. Cash collected from customers in payment of accounts receivable £12,468. 5. Cash paid to creditors for accounts payable due £12,360. 6. Repair services performed during January: for cash £6,483; on account £9,866. 7. Wages for January, paid in cash, £2,472. 8. Dividends during January were £2,696.

Answer 1

For event no.8 please assume that dividend is paid in cash.

Event	Journal entries	Dr.	Cr.
1	Advertising costs	1024
	To Cash		1024
	(being advertising expense paid in cash)
2	Supplies	3877
	To Accounts payable		3877
	(being supplies purschased on account)
3	Miscellaneous expense	1932
	To Cash		1932
	(being miscellaneous expense paid in cash)
4	Cash	12468
	To Accounts receivable		12468
	(being cash collected from accounts receivable)
5	Accounts payable	12360
	To Cash		12360
	(being creditors paid in cash)
6	Cash	6483
	Accounts receivable	9866
	To Repair service		16349
	(being repair service performed in cash and on account)
7	Wages	2472
	To Cash		2472
	(being wages paid in cash)
8	Dividends	2696
	To Cash		2696
	(being dividend paid in cash)