Lourdes Yabar opened a computer repair business on May 1, 2016. During the first
ID: 2495764 • Letter: L
Question
Lourdes Yabar opened a computer repair business on May 1, 2016. During the first month of operations, the firm had the following transactions. May 1 Lourdes Yabar invested $30,000 cash in the business. 2 Issued Check 101 for $2,000 to pay the rent for May. 3 Purchased supplies for $1,450. Paid with Check 102. 4 Bought equipment for $9,900. Issued Check 103 for $2,900 as a down payment; balance is due in 30 days. 6 Returned damaged supplies, and received a cash refund of $290. 12 Performed services for $1,080 on credit. 19 Issued Check 104 for $340 to pay for a newspaper advertisement. 26 Issued Check 105 for $440 to pay the monthly electric bill. 28 Performed services for $780 cash. 29 Received $490 on account from credit customers. 29 Issued Check 106 for $240 to pay the monthly telephone bill. 31 Issued Check 107 for $8,350 to pay a creditor. 31 Issued Check 108 for $3,400 to Lourdes Yabar for personal expenses. Prepare journal entries to record the above transactions. Lourdes Yabar opened a computer repair business on May 1, 2016. During the first month of operations, the firm had the following transactions.Explanation / Answer
Journal
Date Account Names Debit Credit May 1 Cash 30000 Capital 30000 May 2 Rent 2000 Bank 2000 May 3 Supplies 1450 Bank 1450 May 4 Equipment 9900 Bank 2900 Accounts Payable 7000 May 6 Cash 290 Supplies 290 May 12 Accounts Receivable 1080 Service Revenue 1080 May 19 Advertisement 340 Bank 340 May 26 Electricity Expense 440 Bank 440 May 28 Cash 780 Service Revenue 780 May 29 Cash 490 Accounts Receivable 490 May 29 Telephone expense 240 Bank 240 May 31 Accounts Payable 8350 Bank 8350 May 31 Drawings 3400 Bank 3400Related Questions
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