Help Chapter 3 Homework Diana Mark is the president of ServicePro. Inc., a compa

Question

Help Chapter 3 Homework Diana Mark is the president of ServicePro. Inc., a company that provides temporary employees for not-for-profit companies. ServicePro has been operating for five years, its revenues are increasing with each passing year. You have been hired to help Diana in analyzing the following transactions for the first two weeks of April: 50 points April 2 Purchased and received office supplies for $1,150 on account. April 5 Billed the local United Way office $5,680 for temporary services provided. April 8 Paid $38e for supplies purchased and recorded on account last period April 8 Placed an advertisement in the local paper for $1,e5e cash. April 9 Purchased new equipment for the office costing $3,600 cash. April 10 Paid employee wages of $2, 580 incurred in April April 11 Received $2,300 on account from the local United Way office billed on April 5 April 12 Purchased land as the site of a future office for $16,580. The land value was appraised as $24,8e. Paid $2,280 down and eBook Print signed a long-term note payable for the balance April 13 Issued 2,280 additional shares of common stock for $30 per share in anticipation of building a new office. April 14 Billed Family & Children's Services $3,300 for services rendered this month April 15 Received the April utilities bill for $958 to be paid next month. Required: For each of the transactions, prepare journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the purchase and receipt of office supplies for $1,150 on account.

Explanation / Answer

(1) Diana Mark

Journal entry -

Apr 2 - Office Supplies A/c .. Dr. 1,150

To Cash A/c .. 1,150

(being amount paid for office supplies)

Apr 5 - Accounts Receivable A/c .. Dr. 5,600

To Ravenue A/c .. 5,600

(Being bill raised for temporary services provided)

Apr 8 - Accounts Payable A/c.. Dr. 380

To Cash A/c. .. 380

(Being amount paid this year for supplies purchased last year)

Apr 8 - Advertising expense A/c.. Dr. 1,050

To cash A/c. .. 1,050

(Being cash paid for advertising expense)

Apr 9 - Equipment A/c...Dr. 3,600

To Cash A/c 3,600

(Being cash paid for purchase of equipment)

Apr 10 - Wages A/c... Dr. 2,500

To CAsh A/c. 2,500

(being wages paid in cash )

Apr 11 - Cash A/c. Dr. 2,300

To Accounts Receivable A/c. 2,300

(being cash received from Local united way office for bill raised earlier)

Apr 12 - Land A/c.. Dr. 24,000

To Cash A/c. 2,200

To Accounts Payable 14,300

To Land Revaluation A/c. 7,500

(being land purchased for part payment on cash and the value appraised for property. Note: It is assumed that company records revaluation as and when needed and thus, revaluation recorded. Alternative can be to avoid revaluation at the time of purchase.)

Apr 13 - CAsh A/c. .. Dr. 66,000

To Capital A/c. 66,000

(being shares issued against cash )

Apr 14 - Accounts Receivables A/c. .. dr. 3,300

To Sales A/c... 3,300

(being bill raised for family and children's services)

Apr 15 - Utilities expense A/c.. Dr. 950

To Accounts Payable A/c.. 950

(being utilities bill raised to be paid next month)

(2) Spicewood Stables

1. Journal entry -

a. Cash A/c .... Dr. 290,000

To Capital A/c ... 290,000

(Being amount received against stock issue)

b. Barn A/c .... Dr. 182,000

To Cash A/c .... 91,000

To Accounts Payable A/c..91,000

(Being barn acquired half on cash and half on credit to paid after 3years)

c. Accounts Receivable A/c ........ Dr. 19,800

To Animal Care Services A/c .. 19,800

(Being provided services in animal care on credit)

d. Cash A/c ..........Dr. 18,800

To rent A/c ... 18,800

(Being rent received in cash for providing stables)

e. Cash A/c ........ Dr. 2,600

To Deferred Revenue A/c .. 2,600

(Being cash received in advance and revenue to be deferred)

f. Hay and Feed Supplies A/c ....Dr. 4,800

To Cash A/c .. 4,800

(Being hay and feed supplies purchased)

g. Accounts Payable A/c .. Dr. 3,540

To Cash A/c.. 3,540

(Being cash paid against previous purchases)

h. Cash A/c ............. Dr. 2,520

To Accounts Receivable A/c .. 2,520

(Being cash received against previous sales)

i. Prepaid insurance policy A/c .... Dr. 4,000

To Cash A/c.. 4,000

(Being amount paid for insurance policy in advance)

j. Water and utilities expense A/c.. Dr. 1,250

To Cash A/c .... 1,250

(Being expenses paid on water and utilities)

k. Wages A/c ....Dr. 15,400

To Cash A/c.. 15,400

(being amount paid for wages)

i. Electricity Utility expense A/c .. Dr 3,140

To Accounts Payable A/c .. 3,140

(Being electricity bill received, to be paid next month)

2. T- format

Cash account

Capital account

Barn account

Accounts Payable

Accounts Receivable

Animal care services

Rent account

Hay and feed supplies

Prepaid insurance policy account

Water and utilities account

Wages account

electricity utility expense account

By Barn 91,000 To Capital 2,90,000 By HAy and feed supplies 4,800 To rent 18,800 By Accounts payable 3,540 To Deferred revenue 2,600 By Prepaid ins. policy 4000 To Accounts receivable 2520 By water and utilities expenses 1,250 By wages 15,400 By bal c/d 1,93,930

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