More Info Oct 2 Johnson Services received $65,000 cash and issued common stock to the stockholders 3 Purchased supplies, $700, and equipment, $12,300, on account. 4 Performed services for a customer and received cash, $5,700 7 Paid cash to acquire land, $35,000. 11 Performed services for a customer and billed the customer, $3,100. Johnson expects to collect within one month. 16 Paid for the equipment purchased October 3 on account. 17 Paid for newspaper advertising, $620 18 Received partial payment from customer on account, $1,000 22 Received and paid the water and electricity bills, S450. 29 Received $2,500 cash for servicing the heating unit of a customer 31 Paid employee salaries, $2,200. 31 Declared and paid dividends of $1,400. Print Done Requirement 1. Record each transaction in the journal. Key each transaction by date. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.) Oct 2: Johnson Services received $65,000 cash and issued common stock to the stockholders. Journal Entry Accounts Debit Credit Date Oct Oct 3: Purchased supplies, $700, and equipment, $12,300, on account. (Prepare a single compound journal entry.) Journal Entry Date Accounts Debit Credit Oct 1 Oct 4: Performed services for a customer and received cash, 55,700. Journal Entry Date Accounts Debit Oct Credit Oct 7: Paid cash to acquire land, $35,000. Journal Entry Date Accounts Oct Debit Credit Oct 11: Performed services for a customer and billed the customer, $3,100. Johnson expects to collect within one month. Journal Entry Date Accounts Debit Credit Oct 2 Oct 16: Paid for the equipment purchased October 3 on account. Journal Entry Accounts Debit Credit Date Oct Oct 17: Paid for newspaper advertising, S620. Journal Entry Accounts Debit Credit Date Oct Oct 18: Received partial payment from customer on account, $1,000 Journal Entry Date Accounts Debit Oct Credit Oct 22: Received and paid the water and electricity bills, Journal Entry Accounts Debit Credit Date Oct 1 Oct 29: Received $2,500 cash for servicing the heating unit of a customer. Journal Entry Date Accounts Debit Oct 0 Credit Oct 31 (a): Paid employee salaries, $2,200 Journal Entry Accounts Debit Credit Date Oct C Oct 31 (b): Declared and paid dividends of $1,400. Journal Entry Date Accounts Oct CC Debit Credit Requirement 2. Post the transactions to the T-accounts, using transaction dates as posting references. Determine the ending balance in each account. Review the journal entries prepared in previous steps. Cash Common Stock Accounts Receivable Dividends Supplies Service Revenue Equipment Salary Expense Land Advertising Expense Accounts Payable Utilities Expense Johnson Services, Inc. Trial Balance October 31 Account Debit Credit Requirement 4. Ronald Johnson, the manager, asks you how much in total resources the business has to work with, how much it owes, and whether October was profitable (and by how much). Total resources Amount owed The company = $ = $ profitable, as it reported D o fs O
