Create general ledger entries for the following: 1. Paid off beginning Accounts

Question

Create general ledger entries for the following:

1. Paid off beginning Accounts Payable balance ($4500)

2. Collected the entire Accounts Receivable balance that existed at the beginning of the year ($3200)

3. Paid the "Income Taxes Payable" balance that existed in the beginnig of the year ($1000)

4. Purchased $1600 of equipment on credit (under terms n/60)

5. Earned revenue of $8600 of which $7500 has been colected in cash with $1100 still due from customers

6. Paid cash wages of $3860 of which $900 was payment on the beginning year Wages Payable blanace ($900) with the remaining $2960 paid for work performmed furing the current month

7. Purchased supplies costing $400 for use in future months. $100 of these purchases remain unpaid for at the end of the month (i.e. $300 was paid in cash with $100 still on account)

8. Issued 1000 additional shares of stock and recieved $8800 cash

9. Near the end of the motnh received a $700 deposit from a customer for services to be performed next month

10. Declared and paid a cash dividend of $2500

Explanation / Answer

Journal Entry Date Particulars Dr. Amt Cr. Amt. 1 Accounts Payables                                    Dr. 4500    To Cash 4500 (Paid the accounts payables) 2 Cash                                                                 Dr. 3200 To Accounts Receivables 3200 (Paid the accounts receivables) 3 Income Tax payable                                 Dr. 1000    To Cash 1000 (Paid the income tax payable) 4 Equipment                                                  Dr. 1600 To Accounts Payables 1600 (Purchase equipment on credit) 5 Cash                                                              Dr. 7500 Accounts Receivables                           Dr. 1100     To Income Earned 8600 Income earned and collected) 6 Wages Exp.                                                Dr. 2960 Wages Payable                                        Dr. 900     To Cash 3860 (Wages Paid) 7 Supplies                                                     Dr. 400    To Cash 300    To Accounts Payable . 100 (Supplies purchased during the month) 8 Cash                                                             Dr. 8800    To Common Stock 8800 (Issues 1000 additional shares) 9 Cash                                                             Dr 700    To Fees recd in advance 700 (Fess recd in advance) 10 Dividend                                                   Dr. 2500    To Cash 2500 (declare and paid the cash dividend)

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