arbara Jones opened Barb\'s Book Business on February 1. You have been hired to
ID: 2407128 • Letter: A
Question
arbara Jones opened Barb's Book Business on February 1. You have been hired to maintain the ompany's financial records. The following transactions occurred in February, the first month of operations 1. Received shareholders' cash contributions on February 1 totaling $30,000 to form the corporation issued 1,000 shares of common stock. 2. Paid $3,360 cash on February 2 for three months' rent for office space. TIP: For convenience, simply record the full amount of the payment as an asset (Prepaid Rent). At the end of the month, this account will be adjusted to its proper balance. 3. Purchased supplies on February 3 for $325 cash. 4. Signed a promissory note on February 4, payable in two years, deposited $19,200 in the company's bank account 5. On February 5, purchased equipment for $6,850 and land for $12,350 6. Placed an advertisement in the local paper on February 6 for $480 cash 7. Recorded sales on February 7 totaling $3,600, $2,450 was in cash and the rest on accounts receivable. 8. Collected accounts receivable of $100 from customers on February 8 9. On February 9, repaired one of the computers for $134 cash. 10. Incurred and paid employee wages on February 28 of $890 TIP: Most repairs involve costs that do not provide additional future economic benefits. Required: 1. Prepare the journal entry for each of the above transactions (If no entry is required fora transactionlevent, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 12 34567 89 10 Received shareholders' cash contributions on February 1 totaling $30,000 to form the corporation; issued 1,000 shares of common stock. Record the transaction Note: Enter debits before eredits General Journal Debit Credit O Type here to search 0Explanation / Answer
S.No Date Accounting titles & Explanations Debit Credit 1) 01-Feb Cash $30,000 Common stock $30,000 2) 02-Feb prepaid rent $3,360 cash $3,360 3) 03-Feb Supplies $325 cash $325 4) 04-Feb cash $19,200 notes payable $19,200 5) 05-Feb Equipment $6,850 land $12,350 cash $19,200 6) 06-Feb Advertising expense $480 cash $480 7) 07-Feb Cash $2,450 Accounts receivable $1,150 sales $3,600 8) 08-Feb Cash $100 Accounts receivable $100 9) 09-Feb Repairs & maintenance $134 cash $134 10) 10-Feb Wage expense $890 cash $890 T- Accounts cash Beg bal - 1 $30,000 $3,360 2 4 $19,200 $325 3 7 $2,450 $19,200 5 8 $100 $480 6 $134 9 end bal $27,361 $890 10 Accounts receivable Beg bal - 7 $1,150 $100 8 End bal $1,050 Supplies Beg bal $0.00 3 $325.00 end bal $325.00 prepaid rent Beg bal $0 2 $3,360 end bal $3,360 land beg bal $0 5 $12,350 end bal $12,350 equipment beg bal $0 5 $6,850 end bal $6,850 notes payable(long term) beg bal $0 $19,200 4 end bal $19,200 common stock beg bal 0 $30,000 advertising expense beg bal 6 $480 end bal $480 wage expense beg bal $0 10 $890 repairs & maintenance beg bal 9 $134 end bal $134 Service Revenue Beg Bal 0 $3,600 7 $3,600 3. Unadjusted Trial Balance Account Name Debit Credit Cash $27,361 Account Receivable $1,050 Supplies $325 Prepaid Rent $3,360 Land $12,350 Equipment $6,850 Note Payable (Long Term) $19,200 Common Stock $30,000 Service Revenue $3,600 Advertising Expense $480 Salaries and wages Expense $890 Repair and Maintainance expense $134 Total $52,800 $52,800
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