Date Dec. 1 Cash Walton, Capital Accounts and Explanation Debit Credit 55,000 55,000 Owner contribution. Dec. 1 Equipment Cash 9,000 9,000 Purchased equipment with cash. Dec. 1 Prepaid Insurance 1,500 Cash 1,500 Paid insurance in advance. Dec. 9 Land Cash 16,000 16,000 Purchased land with cash. Dec. 10 Office Supplies Accounts Payable 2,000 2,000 Purchased office supplies on account. Dec. 19 Cash 12,000 Notes Payable 12,000 Borrowed cash on notes payable. Dec. 22 Advertising Expense 1,700 Cash 1,700 Paid cash expense. Dec. 26 Accounts Payable Cash 300 300 Dec. 28 Utilities Expense Utilities Payable Accrued utility liability. Dec. 31 Cash Accounts Receivable Service Revenue Service revenue earned in cash and on account. 180 14,000 180 180 2,600 16,600 Dec. 31 Salaries Expense Rent Expense Cash 3,800 1,300 5,100 Paid cash expenses. Dec. 31 Cash Unearned Revenue 1,400 1,400 Collected cash for future services. Dec. 31 Walton, Withdrawals 4,000 Cash 4,000 Owner withdrawal. Dec. 1 Walton contributed $55,000 cash to the business in exchange for capital. 1 1 Purchased $9,000 of equipment paying cash. Paid $1,500 for a five-month insurance policy starting on December 1. 9 Paid $16,000 cash to purchase land to be used in operations. 10 Purchased office supplies on account, $2,000. 19 Borrowed $12,000 from the bank for business use. Walton signed a note payable to the bank in the name of the business. The note is due in five years. 22 Paid $1,700 for advertising expenses. 26 Paid $300 on account. 28 31 31 The business received a bill for utilities to be paid in January, $180. Revenues earned during the month included $14,000 cash and $2,600 on account. Paid employees' salaries $3,800 and building rent $1,300. Record as a compound entry. The business received $1,400 for auto screening services to be performed next month. 31 31 Walton withdrew cash of $4,000. Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Equipment; Accumulated Depreciation-Equipment; Land; Accounts Payable; Utilities Payable; Interest Payable; Unearned Revenue; Notes Payable; Walton, Capital; Walton, Withdrawals; Income Summary; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; Advertising Expense; Supplies Expense; Insurance Expense; Interest Expense; and Depreciation Expense-Equipment. a. Office Supplies used during the month, $1,000. b. Depreciation for the month, $150. c. One month insurance has expired. d. Accrued Interest Expense, $50. Post the transactions to the T-accounts. Use the transaction dates as posting references. If posting more than one entry on the same date to a single account, post to that account in the same order as you prepared the entries above. Use a "Bal." posting reference to show the ending balance of each account. For any accounts with a zero balance, select the "Bal." posting reference and enter a "0" on the normal side of the account. Review the journal entries you prepared above. Cash Accounts Payable Service Revenue Utilities Payable Salaries Expense Accounts Receivable Interest Payable Rent Expense Office Supplies Unearned Revenue Utilities Expense Prepaid Insurance Notes Payable Advertising Expense Equipment Walton, Capital Supplies Expense Accumulated Depr.-Equipment Walton, Withdrawals Insurance Expense Land Interest Expense Depreciation Expense-Equipment