Problem

Recording Nonquantitative Journal Entries (AP3-1)The following list includes a series of a...

Recording Nonquantitative Journal Entries (AP3-1)

The following list includes a series of accounts for Sanjeev Corporation, w hich has been operating for three years. These accounts are listed and numbered for identification. Following the accounts is a series of transactions. For each transaction, indicate the account(s) that should be debited and credited by entering the appropriate account number(s) to the right of each transaction. If no journal entry is needed, w rite none after the transaction. The first transaction is used as an example.

Account No.

Account Title.

1

Cash

2

Accounts Receivable

3

Supplies

4

Prepaid Expenses

5

Equipment

6

Patents

7

Accounts Payable

8

Note Payable

9

Wages Payable

10

Income Taxes Payable

11

Contributed Capital

12

Retained Earnings

13

Service Revenue

14

Operating Expenses (wages, supplies)

15

Income Tax Expense

16

Interest Expense

 

Transactions.

Debit.

Credit.

a. Example: Purchased equipment for use in the business; paid one-third cash and signed a note payable for the balance.

5

1,8

b. Paid cash for salaries and wages earned by employees this period.

———

———

c. Paid cash on accounts payable for expenses incurred last period.

———

———

d. Purchased supplies to be used later; paid cash.

———

———

e. Performed services this period on credit.

———

———

f. Collected cash on accounts receivable for services performed last period.

———

———

g. Issued stock to new investors.

———

———

h. Paid operating expenses incurred this period.

———

———

i. Incurred operating expenses this period to be paid next period.

———

———

j. Purchased a patent (an intangible asset); paid cash.

———

———

k. Collected cash for serv ices performed this period.

———

———

l. Used some of the supplies on hand for operations.

———

———

m. Paid three-fourths of the income tax expense incurred for the year: the balance will be paid next year.

———

———

n. Made a payment on the equipment note in (a): the payment was part principal and part interest expense.

———

———

o. On the last day of the current period, paid cash for an insurance policy covering the next two years.

———

———

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