Use the following information to answer questions 1 - 4: At December 31, 2016, t

Question

Use the following information to answer questions 1 - 4:

At December 31, 2016, the accounting records of Hill Pool, Co. reflected the following:

Accounts Payable $ 10,100 Accounts Receivable                               8,450                

Retained Earnings                                    7,830        Supplies                   `      2,350

Building                                                   23,950        Cash                                     15,420                

Notes Payable, due Jan 2018                 10,240                                 Common Stock                      20,000

Unearned Revenue                                   2,000                

During January 2017, the following transactions occurred:

                Jan 2      Issued 5,000 shares of common stock in exchange for $10,000

                Jan 8      Paid creditors $2,500 of what was owed on account.

                Jan 15    Repaired a pool and collected the fee of $1,800.

                Jan 19    Performed a $500 repair job, which Hill had previously been paid for.

                Jan 25    Collected $2,400 from customers on account.

                Jan 28    Repaired a customer’s pool for $8,200. Billed the customer.

                Jan 30    Declared and paid a cash dividend of $500.

                Jan 30    Paid $2,000 for January wages.

                Jan 30    Supplies on hand at the end of the month amount to $1,300.

                Jan 30    Received a utility bill for $500 which will be paid next month.

The journal entry to record the Jan 19 transaction would include a:

Debit to Accounts Receivable

Credit to Service Revenue

Debit to Service Revenue

Credit to Unearned Revenue

Credit to Accrued Expenses Payable

1 points   

QUESTION 2

To record the Jan 30 transaction for the supplies, Hill, Inc would:

Debit to Supplies Expense for $1,300

Debit to Supplies for $1,050

Credit to Cash for $1,050

Credit to Supplies $1,300

Debit to Supplies Expense for $1,050

Debit to Accounts Receivable

Credit to Service Revenue

Debit to Service Revenue

Credit to Unearned Revenue

Credit to Accrued Expenses Payable

Explanation / Answer

1)The entry is
unearned revenue(db)
revenue(cr)
so it is option B
2)inital supplies is 2350 and at end it is 1300 means 1050 used
supplies expense(db)1050
supplies(cr)1050
it is option E

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