Gradebook ORION Downloada ble eTextbook Problem 2-3A (Part Level Submission) Maq
ID: 2406856 • Letter: G
Question
Gradebook ORION Downloada ble eTextbook Problem 2-3A (Part Level Submission) Maquoketa Services was formed on May 1, 2017. The following transactions took place during the first month Transactions on May 1 1. Jay Bradford Invested $40,000 cash in the company, as its sole owner 2 Hired two employees to work in the warehouse. They will each be paid a salary of $3,050 per month 3. Signed a 2-year rentail agreement on a warehouse; paid $24,000 cash in advance for the first year 4. Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 month Paid $1,800 cash for a one-year insurance pollcy on the furniture and equipment Transactions during the remainder of the month 6. Purchased basic office supples for $420 cash. 7. Purchased more office supplies for $1,500 on account 8 Total revenues earned were $20,000-$8,000 cash and $12,000 on account Paid $400 to suppliers for accounts payable due. 10. 1 Received $3,000 from customers in payment of accounts receivable. 11. Received utility bills in the amount of $380, to be pald next month 12. Paid the monthly salaries of the two employees, totaling $6,100 v(a) Prepare journal entries to record each of the events listed. (Credit account titles are automatically indented when amount is entered. Do not in required, select "No Entry for the account tities and enter O for the amounts) No. Account Titles 8 3 4 0Explanation / Answer
Journal 1 Cash A/c Dr 40000 To Owner's Capital A/c 40000 (Being cash infused by owner) 2 No Entry 3 Prepaid Rent A/c Dr 24000 To Cash A/c 24000 (Being rent paid in advance for the year) 4 Furniture & equipment A/c Dr 30000 To Cash A/c 10000 To Accounts Payable A/c 20000 (Being furniture and equipement purchased partially on cas and partially on credit) 5 Prepaid Insurance A/c Dr 1800 To Cash A/c 1800 (being insurance on furniture & equipment paid for one year) 6 Office supplies A/c Dr 420 To Cash A/c 420 (Being office supplies purchased for cash) 7 Office supplies A/c Dr 1500 To Accounts Payable A/c 1500 (Being office supplies purchased on account) 8 Cash A/c Dr 8000 Accounts Receivable A/c Dr 12000 To Sales Revenue A/c 20000 (being sales revenue recorded) 9 Accounts Payable A/c Dr 400 To Cash A/c 400 (Being accounts payable due paid in cash) 10 Cash A/c Dr 3000 To Accounts Receivable A/c 3000 (Being cash received from customers) 11 Utility Expense A/c Dr 380 To Accrued Expenses A/c 380 (Being utility to be paid next month recorded) 12 Salaries expense A/c Dr 6100 To Cash A/c 6100 (Being salaries for the month paid)
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