Robinson starts a plumbing service named Crusoe Waterworks,Transactions of Cruos

Question

Robinson starts a plumbing service named Crusoe Waterworks,Transactions of Cruose Waterworks during the first year of operations are given below :

a)Robinson deposited 7,000 dollars into a new cheking accounts for the business and recorded the capital contribution.

b)Paid 4,000 dollars cash for equipment to be used for plumbing repairs

c)Borrowed 30,000 dollars from a local bank and deposited the money in the checking account.

d)Paid 800 dollars rent for the year.

d)Purchased 900 dollars of office supplies on account.

f)completed a plumbing repair project for a local lawyer and received 3,500 dollars cash.

Explanation / Answer

Journal entry :

No Accounts & explanation debit credit a Bank 7000 Owner's capital 7000 (To record capital contribution) b Equipment 4000 Cash 4000 (To record equipment purchased) c Bank 30000 Bank loan account 30000 (To record loan taken) d Rent expense 800 Cash 800 (To record rent paid) e Office supplies 900 Account payable 900 (To record office supplies purchased) f Cash 3500 Service revenue 3500 (To record service revenue)

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