Issued Check No. 868 for $8,200 to pay Blue Blazer Realty for two month\'s worth

Question

Issued Check No. 868 for $8,200 to pay Blue Blazer Realty for two month's worth of rent in advance.

1

Obtained a loan of $48,000 from MRMC Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2018 and the principal of the loan is to be repaid on June 1, 2023.

2

Paid the full amount owing to Addax Sports, Check No. 869.

2

Issued Check No. 870 to Office Supplies Warehouse for the purchase of $580 worth of office supplies.

4

Made payment of $840 to State Power for 3 months of electricity up to and including May 31, Check No. 871.

4

Paid sales staff wages of $1,879 for the week up to and including yesterday, Check No. 872. Note that $1,135 of this payment relates to the wages expense incurred during the last week of May.

5

Jump Around paid the full amount owing on their account.

General Journal

Date

Account and Explanation

Post
Ref.

Debit

Credit

Jun

(select)

(select)

Jun

(select)

(select)

Jun

(select)

(select)

Issued Check No. 868 for $8,200 to pay Blue Blazer Realty for two month's worth of rent in advance.

1

Obtained a loan of $48,000 from MRMC Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2018 and the principal of the loan is to be repaid on June 1, 2023.

2

Paid the full amount owing to Addax Sports, Check No. 869.

2

Issued Check No. 870 to Office Supplies Warehouse for the purchase of $580 worth of office supplies.

4

Made payment of $840 to State Power for 3 months of electricity up to and including May 31, Check No. 871.

4

Paid sales staff wages of $1,879 for the week up to and including yesterday, Check No. 872. Note that $1,135 of this payment relates to the wages expense incurred during the last week of May.

5

Jump Around paid the full amount owing on their account.

Explanation / Answer

Journal Entries Date Account Title and explanation Debit Credit Issued Check No. 868 for $8,200 to pay Blue Blazer Realty for two month's worth of rent in advance. Advance Rent $                     8,200       To Cash $                       8,200 (To Record the payment of advance rent) 1 Cash $                  48,000       To Loan from MRMC Bank $                     48,000 (To Record the reciept of the loan) Addax Sports XXX 2      To Cash XXX Office Supplies $                        840 3        To Cash $                           840 (To Record the office supplies) 4 wages $                     1,879 Oustanding wages $                     1,135          To Cash $                       3,014 (To Record the payment of wages) 5 "No Journal entry"

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