Record each transaction in journal entry using the following: Dec. Magness Deliv
ID: 2329423 • Letter: R
Question
Record each transaction in journal entry using the following:
Dec. Magness Delivery Service began operations by receiving $28,000 cash and a truck with a fair value of $10,000 from Ripley Magness. The business issued Magness capital in exchange for this contribution 1 Paid $1,800 cash for a twelve-month insurance policy. The policy begins December 1 Paid $550 cash for office supplies. Performed delivery services for a customer and received $2,000 cash. Completed a large delivery job, billed the customer, $3,000, and received a promise to collect the $3,000 within one week. 4 12 15 18 Paid employee salary, $1,400 20 Received $6,000 cash for performing delivery services. 22 Collected $1,900 in advance for delivery service to be performed later. 25 Collected $3,000 cash from customer on account. 27 Purchased fuel for the truck, paying $200 on account. (Credit Accounts Payable) 28 Performed delivery services on account, $1,100 29 Paid office rent, $2,100, for the month of December 30 Paid $200 on account. 31 Magness withdrew cash of $2,200Explanation / Answer
General Journal Date Account Tittle & Explanation Debit Credt Dec-01 Cash $28,000 Delivery Truck $10,000 Magness 's Capital $38,000 To Record Issuance of Common Stock agst exchange of cash and Truck Dec-01 Prepaid Insurance $1,800 Cash $1,800 To Record Prepaid Insurance Paid 04-Dec Supplies $550 Cash $550 To Record Supplies payment made for Supplies 12-Dec Cash $2,000 Service Revenue $2,000 To Record Service Revenue on cash 15-Dec Account Receivable $3,000 Service Revenue $3,000 To Record Service Revenue on Account 18-Dec Salary Expense $1,400 Cash $1,400 To Record Salary Paid 20-Dec Cash $6,000 Service Revenue $6,000 To Record Service Revenue on cash 22-Dec Cash $1,900 Unearned service Revenue $1,900 To Record Advance from Customer 25-Dec Cash $3,000 Account Rceivable $3,000 To Record received Cash agst AR 27-Dec Fuel Expense $2,000 Account Payable $2,000 To Record Fuel Expense 28-Dec Account Rceivable $1,100 Service Revenue $1,100 To Record Service Revenue on Account 29-Dec Rent Expense $2,100 Cash $2,100 To Record Rent Expense 30-Dec Account Payable $200 Cash $200 To Record payment made agst AP 31-Dec Magness's Drawing $2,200 Cash $2,200
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