Question

Lurrent Attempt in Progress On April 1, Sage Hill Inc. began operations. The following transactions were completed during the month. 1. Issued common stock for $19,700 cash. 2. Obtained a bank loan for $5,700 by issuing a note payable. 3. Paid $9,000 cash to buy equipment. 4. Paid $1,000 cash for April office rent. 5. Paid $1,200 for supplies. 6. Purchased $490 of advertising in the Daily Herald, on account. 7. Performed services for $14,800: cash of $1,640 was received from customers, and the balance of $13,160 was billed to customers on account. 8. Paid $330 cash dividend to stockholders. 9. Paid the utility bill for the month, $1,640. 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 employees' salaries, $5,250. 13. Received $9,840 cash from customers billed in transaction (7). 14. Paid income tax, $1,230. Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Ans:

No	Account and explanation	Debit($)	Credit($)
1	Cash	19700
	Common Stock		19700
2	Cash	5700
	Notes payable		5700
3	Equipment	9000
	Cash		9000
4	Office rent	1000
	Cash		1000
5	Supplies	1200
	Cash		1200
6	Advertising expense	490
	Advertising payable		490
7	Cash	1640
	Account receivable	13160
	Service revenue		14800
8	Cash dividend	330
	Cash		330
9	Utilities expense	1640
	Cash		1640
10	Advertising payable	490
	Cash		490
11	Bank interest	30
	Cash		30
12	Salaries expense	5250
	Cash		5250
13	Cash	9840
	Account receivable		9840
14	Income tax expense	1230
	Cash		1230