Ricky’s Piano Rebuilding Company has been operating for one year. On January 1,

Question

Ricky’s Piano Rebuilding Company has been operating for one year. On January 1, at the start of its second year, its income statement accounts had zero balances and its balance sheet account balances were as follows:

Received and paid cash for the supplies in (g).

Prepare journal entries for the above January transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Explanation / Answer

The journal entries for January 2013 are as follows:

a) Cash A/c Dr $705

To Unearned Revenue A/c $705

b) Cash A/c Dr $640

To Rent received A/c $640

c) Cash A/c Dr $17525

To Sales A/c $17525

d) Accounts Receivable A/c Dr $9200

To Sales A/c $9200

e) Cash A/c Dr $6800

To Accounts Receivable A/c $6800

f) Electric & Gas expenses A/c Dr $475

To Accounts Payable A/c $475

g) No Journal Entry is required as it is an event and no inflow or outflow of resources occured to the company.

h) Accounts Payable A/c Dr $3200

To Cash A/c $3200

i) Wages expense A/c Dr $11900

To Cash A/c $11900

j) Supplies A/c Dr $1025

To Cash A/c $1025

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