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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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