Problem 3d: Journal Entries, Posting, and Trial Balance For questions 10-18 Record the Studio's transactions in its general journal. Notice that the first transaction has been processed for you. April 1: Bernard started the business by depositing $8,000 cash in a bank account in the corporation's name in exchange for 8,000 shares of $1 par value per share common stock. The company's accounting system used only the following accounts: Cash, accounts receivable, photography supplies, prepaid rent, accounts payable, common stock, retained earnings, dividends, fees revenue, and telephone expense. Credits Debits $8,000 Description Cash Common Stock Owner's investment $8,000 The company's receipt of cash increased its cash asset by $8,000. Since assets increase with debits, cash is debited for $8,000. The cash was received from the owner and, in return, the owner received shares of common stock. Since debits equal credits, the company's common stock must be credited for $8,000. 15. April 21: Paid cash for April's telephone bill of $30. The company's accounting system used only the following accounts: Cash, accounts receivable, photography supplies, prepaid rent, accounts payable, common stock, retained earnings, dividends, fees revenue, and telephone expense. Description Debits Credits | A) Cash $30 Telephone Expense April telephone bill $30 B) $30 Telephone Expense Accounts Payable April telephone bill $30 C) $30 Accounts Payable Cash April telephone bill $30 D) $30 Retained Earnings Cash April telephone bill $30 1 E) $30 Telephone Expense Cash April telephone bill a.A) b. B) c.C) d.D) e. E) 16. April 23: Received $170 cash from KMV Inc. as partial payment for photography services provided to them on April 9. (On April 9, Provencher Photography Studio Photographed KMV Inc. executives and billed them $500 for services. KMV Inc. promised to pay Provencher Photography Studio by May 9.) The company's accounting system used only the following accounts: Cash, accounts receivable, photography supplies, prepaid rent, accounts payable, common stock, retained earnings, dividends, fees revenue, and telephone expense. Description Debits Credits A) Accounts Receivable $170 Cash $170 KMV Inc. 4/9 B) $170 Cash Fees Revenue KMV Inc. 4/9 $170 c) $170 Accounts Receivable Fees Revenue KMV Inc. 4/9 $170 D) TS $170 Cash Accounts Receivable KMV Inc. 4/9 $170 E) $1701 Fees Revenue Cash $170 KMV Inc. 4/9 a. A) b.B) c. C) d.D) 17. April 26: Declared and paid a cash dividend of $60. The company's accounting system used only the following accounts: Cash, accounts receivable, photography supplies, prepaid rent, accounts payable, common stock, retained earnings, dividends, fees revenue, and telephone expense. Description Debits Credits A) Accounts Payable $60 Cash $60 April dividends B) Common Stock $60 Cash $60 April dividends | S60 C) Dividends Cash $60 April dividends D) 5601 Retained Earnings Cash April dividends $60 E) $60 Cash Dividends $60 April dividends OOOOO Udo a. A) b.B) c. C) d. D) BE 18. April 30: Paid $220 cash to rent the photography studio for the month of May. The company's accounting system used only the following accounts: Cash, accounts receivable, photography supplies, prepaid rent, accounts payable, common stock, retained earnings, dividends, fees revenue, and telephone expense. Description Debits Credits A) Prepaid Rent $220 Cash $220 May rent payment B) $220 Cash Retained Earnings May rent payment $220 C) T $220 Retained Earnings | Cash $220 May rent payment D) $220 Cash Prepaid Rent May rent payment $220 $220 $2201 OOOOO Udo E) Accounts Payable Cash May rent payment a. A) b.B) c.C) d. D) e. E)