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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
- 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 payable.
- Recorded the adjusting entry to recognize $3,900 of insurance expense.
- Received $7,600 cash for services to be performed at a later date.
- Purchased land for $1,180 cash.
- 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 |
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.)
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