Recording Transactions Using Journal Entries and T-Accounts

Use the information below to complete the following.

(1)Receive 22,500 in exchange for common stock.(2)Borrow 4,500 from bank.(3)Purchase 900 of supplies inventory on credit.(4)Receive 6,750 cash from customers for services provided.(5)Pay 900 cash to supplier in transaction 3.(6)Receive order for future services with 1,575 advance payment.(7)Pay 2,250 cash dividend to shareholders.(8)Pay employees 2,700 cash for compensation earned.(9)Pay 225 cash for interest on loan in transaction 2.

A) Prepare journal entries for each of the transaction (1) through (9).

B) Set up T-accounts for each of the accounts used in part a. and post the journal entries to those T-accounts. (The T-accounts will not have opening balances.)

Journal entries T-accounts \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c}{ Unearned Revenue (L) } \\ \hline(1) & & & \\ \hline(2) & & & \\ \hline(3) & & & \\ \hline(4) & & & \\ \hline(5) & & & \\ \hline(6) & & & \\ \hline(7) & & & \\ \hline(8) & & & \\ \hline(9) & & & \\ \hline Bal & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Wages Expense (E) } \\ \hline(1) & & \\ \hline(2) & & & \\ \hline(3) & & & \\ \hline(4) & & & \\ \hline(5) & & & \\ \hline(6) & & & \\ \hline(7) & & & \\ \hline(8) & & \\ \hline(9) & & \\ \hline Bal & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Notes Payable (L) } \\ \hline(1) & & & \\ \hline(2) & & & \\ \hline(3) & & & \\ \hline(4) & & & \\ \hline(5) & & & \\ \hline(6) & & & \\ \hline(7) & & & \\ \hline(8) & & & \\ \hline(9) & & & \\ \hline Bal & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{3}{|c|}{ Interest Expense (E) } \\ \hline(1) & & \\ \hline(2) & & \\ \hline(3) & & \\ \hline(4) & & \\ \hline(5) & & \\ \hline(6) & & \\ \hline(7) & & \\ \hline(8) & & \\ \hline(9) & & \\ \hline Bal & & \\ \hline \end{tabular}