Question
Please help with Journal Entries Mike Smith started a business on November 1, 2019, called Smith's Delivery Service. Mike hired a part-time college student as
Please help with Journal Entries
Mike Smith started a business on November 1, 2019, called Smith's Delivery Service.
Mike hired a part-time college student as an assistant.
Mike has decided to use the following accounts for recording transactions:
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Nov. 1 Arnold invested cash to start the business, $51,800
Nov. 1 Purchased a 1-year insurance policy for $3,600.
Nov. 1 Purchased a used van for $7,000 cash.
Nov. 2 Purchased equipment on account, $5,040
Nov. 10 Received cash for services rendered, $5,950
Nov. 15 Paid $3,100 cash on account owed from equipment purchase on Nov. 2
Nov. 15 Paid rent for the month, $1,540.
Nov. 15 Paid the telephone bill, $280.
Nov. 17 Earned revenue on account, $5,180
Nov. 18 Purchased office supplies for cash, $600
Nov. 20 Paid wages to the student, $750.
Nov. 22 Billed a client $3,850 for services rendered. The client will pay the bill in the following month.
Nov. 24 Received $5,180 cash from services performed on November 17.
Nov. 25 Paid cash for gas and oil expenses on the van, $875.
Nov. 27 Purchased an additional delivery van for $9,380. Paid $2,500 cash and will pay the remaining balance in November.
Nov. 30 Delivery fees earned for the remainder of the month amounted to $4,480; $2,000 was received in cash the remaining will be collected in the following month.
Nov. 30 Arnold withdrew cash at the end of the month, $1,800.
Thank you for your help.
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