On December 1, Bob Wonder began an auto repair shop, Wonder's Quality Automotive. The following transactions occurred during December (Click the icon to view the transactions.) The business uses the following accounts: (Click the icon to view the accounts.) Adjustment data: (Click the icon to view the adjustment data.) Read the requirements Requlrement 1. Prepare the journal entries and post to the Taccounts, Begin by preparing the journal entries for the December transactions. (Record debits first, then credits. Select the explanation on the last line of the journal entry table) Dec 1: Wonder contributed $55,000 cash to the business in exchange for capital Date Accounts and explanation Debit Credit Dec 1 Choose from any list or enter any number in the input fields and then click Check Answer. 2 Dec. 1 1 1 9 10 19 Wonder contributed $55,000 cash to the business in exchange for capital. Purchased $9,000 of equipment paying cash. Paid $1,000 for a four-month insurance policy starting on December 1. Paid $16,000 cash to purchase land to be used in operations. Purchased office supplies on account, $2,900. Borrowed $30,000 from the bank for business use. Wonder signed a note payable to the bank in the name of the business. The note is due in five years. Paid $1,200 for advertising expenses. Paid $500 on account. The business received a bill for utilities to be paid in January, $230. Revenues earned during the month included $20,500 cash and $3,300 on account. Paid employees' salaries $3,100 and building rent $1,000. Record as a compound entry. The business received $1,050 for auto screening services to be performed next month. Wonder withdrew cash of $3,500. 22 26 28 31 31 31 31 Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Equipment; Accumulated Depreciation Equipment; Land; Accounts Payable; Utilities Payable; Interest Payable; Unearned Revenue; Notes Payable; Wonder, Capital; Wonder, 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, $900. b. Depreciation for the month, $150. c. One month insurance has expired. d. Accrued Interest Expense, $75