Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Accounts Payable Sleek Ride, a company providing limo services, has a December 3 1 year - end date. For Sleek Ride, the following transactions occurred

Accounts Payable
Sleek Ride, a company providing limo services, has a December 31 year-end date. For Sleek Ride, the following transactions occurred during the first 10 days of June:
Purchased, on credit, space for classified advertisements in the New York Times for $2,000. The advertising was run the day the space was purchased.
Purchased office supplies from Office Max on credit in the amount of $410.
One of Sleek Rides sales staff signed a $37,000 contract to provide exclusive limo services for a large company for the remainder of the month. The salespersons commission is 9% of service revenue. The commission will be paid July 10.(Note: Concern yourself only with the commission.)
Received electric bill for May. The bill is $3,800 and is due on June 15.
Received a bill for $950 from Harrys Auto. Harrys repaired 10 limos for Sleek Ride in late May. Payment is due on June 18.
Required:
Prepare journal entries for the above transactions. If an amount box does not require an entry, leave it blank.
a.(Record purchase of advertising)
b.(Record purchase of supplies)
c.(Record sales commission)
d.(Record utilities expense)
e.(Record vehicle repair)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Core Concepts Of Accounting Information Systems

Authors: Nancy A. Bagranoff, Mark G. Simkin, Carolyn Strand Norman

11th Edition

9780470507025, 0470507020

More Books

Students also viewed these Accounting questions