There are two problems on this assignment. Page down further after you complete
ID: 2489829 • Letter: T
Question
There are two problems on this assignment. Page down further after you complete problem 1.
Problem 1
Record the following journal entries below. The first two are done for you as examples.
Date
Event
1/2/2016
Amanda Smith invested $20,000 cash in capital stock of newly formed corporation
1/4/2016
Purchased equipment on account for $15,000. Note that when you see on account it means the customer will pay later.
1/12/2016
Received $30,000 from customers for services rendered. This was not previously billed to customer.
1/15/2016
Received a bill for construction supplies used in the amount of $4,000.
1/18/2016
Provided $6,400 of services on account.
1/20/2016
Paid employees $4,600 for wages earned.
1/22/2016
Collected the amount due for work provided on January 18.
1/23/2016
Paid the amount due on equipment purchased on January 4.
1/25/2016
Purchased (and used immediately) construction supplies for cash in the amount of $1,200.
1/31/2016
The company paid Amanda Smith a $3,000 dividend
GENERAL JOURNAL
DATE
ACCOUNT
DEBIT
CREDIT
1/2/2016
Cash
20,000
Capital Stock
20,000
Issued stock to Amanda Smith for cash
1/4/2016
Equipment
15,000
Accounts Payable
15,000
Purchased equipment on account
PROBLEM 2
Record the following journal entries below. Hint - some transactions do not require a journal entry
Date
Event
6/2/2015
Jose Alvarado invested $50,000 cash in the capital stock of a new corporation
6/3/2015
Paid rent for June in amount of $2,000.
6/6/2015
Hired an assistant to be paid $6,000 per month.
6/7/2015
Signed contract with Alpha Company to provide services for $15,000.
6/8/2015
Purchased on account and immediately used $1,500 of office supplies.
6/9/2015
Received $5,000 from Alpha Company for services performed to date.
6/15/2015
Paid $2,400 travel expense associated with consultation work.
6/16/2015
Provided services on account to Bravo Company for $6,000.
6/17/2015
Paid $3,000 salary to assistant.
6/23/2015
Billed Charlie Company $8,000 for consulting work performed.
6/25/2015
Reimbursed assistant $150 for travel expenses.
6/26/2015
Collected the amount due from Charlie Company for June 23 work.
6/27/2015
Purchased office furniture for $8,000, paying $2,000 cash with balance on account.
6/27/2015
Paid $1500 on account for June 8 purchase.
6/28/2015
Completed contracted work for Alpha Company and billed remaining $10,000 on account.
6/30/2015
Paid assistant $3,000 salary
GENERAL JOURNAL
DATE
ACCOUNT
DEBIT
CREDIT
There are two problems on this assignment. Page down further after you complete problem 1.
Problem 1
Record the following journal entries below. The first two are done for you as examples.
Date
Event
1/2/2016
Amanda Smith invested $20,000 cash in capital stock of newly formed corporation
1/4/2016
Purchased equipment on account for $15,000. Note that when you see on account it means the customer will pay later.
1/12/2016
Received $30,000 from customers for services rendered. This was not previously billed to customer.
1/15/2016
Received a bill for construction supplies used in the amount of $4,000.
1/18/2016
Provided $6,400 of services on account.
1/20/2016
Paid employees $4,600 for wages earned.
1/22/2016
Collected the amount due for work provided on January 18.
1/23/2016
Paid the amount due on equipment purchased on January 4.
1/25/2016
Purchased (and used immediately) construction supplies for cash in the amount of $1,200.
1/31/2016
The company paid Amanda Smith a $3,000 dividend
GENERAL JOURNAL
DATE
ACCOUNT
DEBIT
CREDIT
1/2/2016
Cash
20,000
Capital Stock
20,000
Issued stock to Amanda Smith for cash
1/4/2016
Equipment
15,000
Accounts Payable
15,000
Purchased equipment on account
PROBLEM 2
Record the following journal entries below. Hint - some transactions do not require a journal entry
Date
Event
6/2/2015
Jose Alvarado invested $50,000 cash in the capital stock of a new corporation
6/3/2015
Paid rent for June in amount of $2,000.
6/6/2015
Hired an assistant to be paid $6,000 per month.
6/7/2015
Signed contract with Alpha Company to provide services for $15,000.
6/8/2015
Purchased on account and immediately used $1,500 of office supplies.
6/9/2015
Received $5,000 from Alpha Company for services performed to date.
6/15/2015
Paid $2,400 travel expense associated with consultation work.
6/16/2015
Provided services on account to Bravo Company for $6,000.
6/17/2015
Paid $3,000 salary to assistant.
6/23/2015
Billed Charlie Company $8,000 for consulting work performed.
6/25/2015
Reimbursed assistant $150 for travel expenses.
6/26/2015
Collected the amount due from Charlie Company for June 23 work.
6/27/2015
Purchased office furniture for $8,000, paying $2,000 cash with balance on account.
6/27/2015
Paid $1500 on account for June 8 purchase.
6/28/2015
Completed contracted work for Alpha Company and billed remaining $10,000 on account.
6/30/2015
Paid assistant $3,000 salary
GENERAL JOURNAL
DATE
ACCOUNT
DEBIT
CREDIT
Explanation / Answer
Date:::::::::::Particulars:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::LF::::::::::::::::Debit::::::::::::::::::::::::Credit
1/2/2016::Cash A/c Dr::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::N/A::::::::::::::$20,000
To Capital(stock):::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$20,000
(Being Amanda Smith invested cash in capital stock has recorded)
_______________________________________________________________________________
1/4/2016::::Equipment A/c Dr::::::::::::::::::::::::::::::::::::::::::::::::::N/A::::::::::::::$15,000
To Accounts payable A/c::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$15,000
(Beings equipment has purchased for on account has recorded)
______________________________________________________________________________
1/12/2016:::Cash A/c DR::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::N/A::::::::::::$30,000
To Revenue A/c :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$30,000
(being cash received for prior service rendered has recorded)
_______________________________________________________________________________
1/15/2016:::Supplies Expense A/c Dr::::::::::::::::::::::::::::::::::::::::::::N/A::::::::::::$4,000
To accounts payable a/c ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$4,000
(Being bill received for the supplies amount has recorded)
________________________________________________________________________________
1/18/2016::::Accounts Receivable a/c Dr::::::::::::::::::::::::::::::::::::::N/A:::::::::::::$6,400
To Revenue A/c ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$6,400
(Being service rendered to customers on account has recorded)
_________________________________________________________________________________
1/20/2016::::::Wages A/c Dr::::::::::::::::::::::::::::::::::::::::::::::::::::::N/A:::::::::::::::$4,600
To Cash A/c ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$4,600
(Being paid wages of employees has recorded)
________________________________________________________________________________
1/22/2016::::Cash a/c Dr:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::N/A:::::::::::::::::$6,400
To accounts receivable A/c ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$6,400
(Being accounts receivable has recorded)
__________________________________________________________________________________
1/23/2016::::Accounts payable A/c Dr:::::::::::::::::::::::::::::::::::::::N/A::::::::::::::::::$4,000
To Cash A/c:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$4,000
(Being supplies expense bill paid out has recorded)
__________________________________________________________________________________
1/25/2016::::Supplies Expense A/c:::::::::::::::::::::::::::::::::::::::::::::N/A::::::::::::::::::$1,200
To Cash A/c ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$1,200
(Being supplies purchased for cash has recorded)
__________________________________________________________________________________
1/31/2016:::Dividends A/c Dr:::::::::::::::::::::::::::::::::::::::::::::::::::::N/A:::::::::::::::::::::$3,000
To Cash A/c ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$3,000
(Being cash dividends paid to Amanda Smith has recorded)
__________________________________________________________________________________
PArt 2
Date:::::::::::Particulars:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::LF::::::::::::::::Debit::::::::::::::::::::::::Credit
6/2/2015:::::Cash A/c Dr::::::::::::::::::::::::::::::::::::::::::::::::::::::::N/A:::::::::::::$50,000
To Capital stock :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$50,000
(Being Jose Alvarado was invested in capital stock has recorded)
__________________________________________________________________________________
6/3/2015::::Rent A/c Dr::::::::::::::::::::::::::::::::::::::::::::::::::::::::N/A::::::::::::::::::$2,000
To Cash A/c :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$2,000
(Being rent paid by cash has recorded)
__________________________________________________________________________________
6/6/2015:::NO entry required
__________________________________________________________________________________
6/7/2015:::NO entry required
_________________________________________________________________________________
6/8/2015:::Supplies Expense a/c Dr:::::::::::::::::::::::::::::::::::::::::N/A:::::::::::::::::$1,500
To Accounts payable A/c::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$1,500
(Being supplies purchased on account has recorded)
___________________________________________________________________________________
6/9/2015:::::::Cash a/c Dr ::::::::::::::::::::::::::::::::::::::::::::::::::::::::N/A::::::::::::::::::::::$5,000
To Accounts receivable A/c ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$5,000
(Being cash received from Alpha Company for services rendered has recorded)
_________________________________________________________________________________
6/15/2015:::Travel Expenses A/c Dr::::::::::::::::::::::::::::::::::::::::::::N/A:::::::::::::::::$2,400
To cash A/c::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$2,400
(Being travel expense paid has recorded)
_________________________________________________________________________________
6/16/2015:::::Accounts Receivable A/c Dr:::::::::::::::::::::::::::::::::::N/A::::::::::::$6,000
To service revenue A/c :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$6,000
(Being services rendered on account to Bravo company has recorded)
_______________________________________________________________________________
6/17/2015::::Salary A/c Dr:::::::::::::::::::::::::::::::::::::::::::::::::::::::::N/A:::::::::::::::$3,000
To Cash A/c::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$3,000
(Being salary paid to assistant has recorded)
______________________________________________________________________________
6/23/2015:::::Accounts Receivable A/c Dr:::::::::::::::::::::::::::::::::::N/A::::::::::::$8,000
To service revenue A/c ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$8,000
(Being services rendered on account to Charlie Company billed has recorded)
________________________________________________________________________________
6/25/2015::Travel Expense A/c Dr::::::::::::::::::::::::::::::::::::::::::::::::N/A:::::::::::::::$150
To cash a/c::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$150
(Being Reimbursed assistant for travel expenses recorded has reocrded)
_______________________________________________________________________________
6/26/2015::::Cash A/c Dr ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::N/A:::::::::::$8,000
To accounts receivable A/c::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$8,000
(Being collected service rendered from Charlie Company has recorded)
___________________________________________________________________________________
6/27/2015::::::Office furniture a/c Dr :::::::::::::::::::::::::::::::::::::::::::::::N/a:::::::$8,000
To Cash a/c :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$2,000
To Accounts payable A/c::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$6,000
(Being purchased furniture on account has recorded)
______________________________________________________________________________
6/27/2015::::ACcounts payable a/c Dr :::::::::::::::::::::::::::::::::N/A::::::::::::::::::::::::::::$1,500
To Cash A/c::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$1,500
(Being on account has recorded)
_____________________________________________________________________________
6/28/2015::::::Accounts Receivable A/c Dr:::::::::::::::::::::::::::::::::::N/A::::::::::::$10,000
To service revenue A/c :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$10,000
(Being services rendered on account to Alpha Company billed has recorded)
_______________________________________________________________________________
6/30/2015::::Salary a/c Dr :::::::::::::::::::::::::::::::::::::::::::::::::N/A:::::::::::::::::::$3,000
To Cash a/c :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$3,000
(Being paid assistant salary has recorded)
_______________________________________________________________________________
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