Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q2 Transaction: On August 2, Design Thinking Pty Ltd paid $14,000 for IT maintenance services to be provided over the next 12-months. The payment was

Q2

Transaction: On August 2, Design Thinking Pty Ltd paid $14,000 for IT maintenance services to be provided over the next 12-months. The payment was recorded as an asset.

Instructions: Record the transaction in the general journal by selecting the correct accounts that are debited and credited. (2 marks)

General Journal

August 2. [ Select ] ["Select account", "Asset", "Cash", "Prepaid Services", "Accounts Receivable", "Machinery", "Land", "Liability", "Accounts Payable", "Wages Payable", "Unearned Service Revenue", "Loan Payable", "Contributed Capital", "Retained Earnings", "Catering Service Revenue", "Insurance Expense", "Supplies Expense", "Rent Expense", "Wages Expense"] $14,000
[ Select ] ["Select account", "Asset", "Cash", "Prepaid Services", "Accounts Receivable", "Machinery", "Land", "Liability", "Accounts Payable", "Wages Payable", "Unearned Service Revenue", "Loan Payable", "Contributed Capital", "Retained Earnings", "Catering Service Revenue", "Insurance Expense", "Supplies Expense", "Rent Expense", "Wages Expense"] $14,000

Transaction: On August 3, Design Thinking Pty Ltd received a cash payment in the amount of $5,000 for training services that were billed (invoiced) for in June.

Instructions: Record the transaction in the general journal by selecting the correct accounts that are debited and credited. (2 marks)

General Journal

August 3. [ Select ] ["Select account", "Asset", "Cash", "Accounts Receivable", "Supplies", "Prepaid Insurance", "Prepaid Rent", "Land", "Machinery", "Liability", "Accounts Payable", "Wages Payable", "Unearned Revenue", "Loan Payable", "Contributed Capital", "Retained Earnings", "Service Revenue", "Insurance Expense", "Supplies Expense", "Rent Expense", "Wages Expense"] $5,000
[ Select ] ["Select account", "Asset", "Cash", "Accounts Receivable", "Supplies", "Prepaid Insurance", "Prepaid Rent", "Land", "Machinery", "Liability", "Accounts Payable", "Wages Payable", "Unearned Revenue", "Loan Payable", "Contributed Capital", "Retained Earnings", "Service Revenue", "Insurance Expense", "Supplies Expense", "Rent Expense", "Wages Expense"] $5,000

Q1:

Transaction: On August 1, the business, Design Thinking Pty Ltd, received prepayment from a customer of $1000 for registration to an online training event to be delivered next month. The cash receipt was recorded as a liability.

Instructions: Record the transaction in the general journal by selecting the correct accounts that are debited and credited. (2 marks)

General Journal

August 1. [ Select ] ["Select account", "Asset", "Cash", "Accounts Receivable", "Prepaid Insurance", "Prepaid Rent", "Supplies", "Machinery", "Land", "Liability", "Accounts Payable", "Unearned Revenue", "Loan Payable", "Contributed Capital", "Retained Earnings", "Service Revenue", "Insurance Expense", "Supplies Expense", "Rent Expense", "Wages Expense", "Depreciation Expense"] $1000
[ Select ] ["Select account", "Asset", "Cash", "Accounts Receivable", "Prepaid Insurance", "Prepaid Rent", "Supplies", "Machinery", "Land", "Liability", "Accounts Payable", "Unearned Revenue", "Loan Payable", "Contributed Capital", "Retained Earnings", "Service Revenue", "Insurance Expense", "Supplies Expense", "Rent Expense", "Wages Expense", "Depreciation Expense"] $1000

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

Horngrens Accounting Volume 1

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol Meissner, JoAnn Johnston, Peter Norwood

11th Canadian Edition

0135359708, 9780135359709

More Books

Students also viewed these Accounting questions

Question

Is there any formal training for teaching?

Answered: 1 week ago