2. Provide the journal entries for the following transactions. If no entry is re

Question

2. Provide the journal entries for the following transactions. If no entry is required, write “no entry". Omit explanations.

Nov. 1 Investors opened a dance school called Olga’s Dance Studio by depositing

$24,000 into a business bank account in exchange for 24,000 shares of $1 par

value stock.

2 Paid three months’ rent in advance, $2,400.

4 Hired a part-time assistant, to be paid $275 per week.

6 Purchased sound equipment for $4,200. Paid $600 in cash, the remainder

to be in installments of $1,200 every two weeks.

8 Signed up ten students, who will begin lessons on November 10, at $100 per

week per student.

17 Received the first week’s tuition from nine students; the tenth student will

remit payment in three days.

17 Paid the assistant his first week’s wages

20 Received payment from the tenth student.

20 Paid the next installment on the sound equipment purchased on November 6.

23 Received an electric bill of $150, to be paid on December 1.

Explanation / Answer

Nov 1 Dr. Cash 24,000 Cr. Common Stocks 24,000 Nov 2 Dr. Prepaid Rent 2,400 Cr. Cash 2,400 Nov 4 No entries Nov 6 Dr. Equipment 4,200 Cr. Cash 600 Cr. Notes Payable 3,600 Nov 8 No entries Nov 17 Dr. Cash 900 Dr. Accounts Receivable 100 Cr. Service Revenue 1,000 Nov 17 Dr. Wages expense 275 Cr. Cash 275 Nov 20 Dr. Cash 100 Cr. Accounts Receivable 100 Nov 20 Dr. Notes Payable 1,200 Cr. Cash 1,200 Nov 23 Dr. Utility expense 150 Cr. Utilities payable 150 Nov 30 Dr. Rent Expense 800 Cr. Prepaid Rent 800

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