Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Performed $21,800 of services on account. Collected $22,500 cash on accounts receivable. Paid $5,200 cash in advance for an insurance policy. Paid $1,290 on accounts

  1. Performed $21,800 of services on account.
  2. Collected $22,500 cash on accounts receivable.
  3. Paid $5,200 cash in advance for an insurance policy.
  4. Paid $1,290 on accounts payable.
  5. Recorded the adjusting entry to recognize $3,900 of insurance expense.
  6. Received $7,600 cash for services to be performed at a later date.
  7. Purchased land for $1,180 cash.
  8. Purchased supplies for $1,800 cash.

Required Record each of the preceding transactions in general journal form and then show the effect of the transaction in a horizontal statements model. The first transaction is shown as an example.

Transaction Account Title Debit Credit
a Accounts receivable 21,800
Service revenue 21,800

image text in transcribedimage text in transcribedimage text in transcribed 1 Collected $22,500 cash on accounts receivable. 2 Paid $5,200 cash in advance for an insurance policy. 3 Paid $1,290 on accounts payable. 4 Recorded the adjusting entry to recognize $3,900 of insurance expense. 5 Received $7,600 cash for services to be performed at a later date. 6 Purchased land for $1,180 cash. 7 Purchased supplies for $1,800 cash. Note : = journal entry has been entered \begin{tabular}{|c|c|c|c|} \hline Transaction & General Journal & Debit & Credit \\ \hline b & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Show the effect of the transaction in a horizontal statements model. The first transaction is shown as an example. (Ent cash outflows with a minus sign. In the Statement of Cash Flows column, use OA to designate operating activity, IA for activity, and NC for net change in cash. Not all cells require input.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan

6th Canadian Edition

1260060411, 9781260060416

More Books

Students also viewed these Accounting questions

Question

Discuss the six purposes of performance management. page 340

Answered: 1 week ago