Question
Required: Prepare the proper journal entries for the following events. (You do not need to describe the transaction/event. Just record the proper debits and credits.)
Required: Prepare the proper journal entries for the following events. (You do not need to describe the transaction/event. Just record the proper debits and credits.)
Record in no colour area directly below the transaction.
- Sold 600 common shares for $15,000 cash.
Dr.
Cr.
- Located a building suitable for a dry-cleaning business, paying the first month's rent of $2,000.
Dr.
Cr.
- Purchased cleaning supplies for $500 cash.
Dr.
Cr.
- Purchased cleaning equipment costing $6,000. $2,000 for cash and the remainder on account.
Dr.
Cr.
Cr.
- Services of $5,000 were rendered for cash and on account during the month. ($4,000 cash, the remainder on account.)
Dr.
Dr.
Cr.
- Paid $1,500 salaries to employees for the month.
Dr.
Cr.
- Paid utilities bill of $500 for the month.
Dr.
Cr.
- Owner invested $25,000 cash into the business and received common shares in return.
Dr.
Cr.
- Received an invoice for repairs, $800.
Dr.
Cr.
- Purchased $400 of supplies on account.
Dr.
Cr.
- Paid cash in advance for television advertising , $5,500. Ads will show on TV next year.
Dr.
Cr.
- Paid $2,000 cash for office furniture.
Dr.
Cr.
- Owner received a dividend of $700.
Dr.
Cr.
- Collected $1,200 on account.
Dr.
Cr.
- Borrowed $10,000 from the bank, and received cash.
Dr.
Cr.
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Payroll Accounting
Authors: Bernard J. Bieg, Judith A. Toland
2013 edition
113396253X, 978-1133962533
