Question
Are the journal entries correct? List of Accounts - Cash, Accounts Receivable, Supplies on Hand, Prepaid Rent, Office Equipment, Accumulated Depreciation, Accounts Payable, Common Stock,
Are the journal entries correct?
List of Accounts - Cash, Accounts Receivable, Supplies on Hand, Prepaid Rent, Office Equipment, Accumulated Depreciation, Accounts Payable, Common Stock, Service Revenue, Rent Expense, Miscellaneous Office Expense, Office Salaries Expense, Supplies Expense, Depreciation Expense, Retained Earnings, Unearned Revenue, Office Salaries Payable, Notes Payable, Interest Payable, and Interest Expense.
- April 1 Issued common stock in exchange for $250,000 cash.
- April 1 Purchased office equipment for $17,500 cash.
- April 1 Borrowed $20,000 from Novus Bank and signed a 10% note. Interest and principal to be paid in 12 months.
- April 5 Paid $4,000 rent in advance for the art gallery for the next two months.
- April 10 Purchased art supplies from Wacky Art Co. on account for $12,200.
- April 12 Received $5,300 from a customer who commissioned a piece of custom art to be completed by the end of the year.
- April 15 Paid miscellaneous office expenses totaling $285 in cash.
- April 17 Billed customers $3,400 for art classes provided in March.
- April 19 Paid $5,300 to Wacky Art Co.
- April 25 Received $2,200 from customers on account.
- April 30 Recorded $3,800 in salaries for the month of April. Paychecks will be disbursed to employees on May 2nd.
April 1 - Debit Credit
Cash 250,000
Common Stock 250,000
April 1
Office equipment 17,500
Cash 17,500
April 1
Cash 20,000
Notes payable 20,000
April 5
Prepaid rent 4,000
Cash 4,000
April 10
Supplies 12,200
A/P 12,200
April 12
Cash 5,300
Unearned revenue 5,300
April 15
Cash 285
Misc office expense 285
April 17
A/R 3,400
Revenue 3,400
April 19
A/P 5,300
Cash 5,300
April 25
Cash 2,200
A/R 2,200
April 30
Office Salaries payable 3,800
Office Salaries Expense 3,800
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