7) Larry Matt, Inc. completed these transactions during December of the current

Question

7) Larry Matt, Inc. completed these transactions during December of the current year: Began a financial services practice by investing $15,000 cash and office Dec. 1 equipment having a $5,000 value 2 Purchased $1,200 of office equipment on credit 3 Purchased S300 of office supplies on credit. 4 Completed work for a client and immediately received a payment of $9 cash 8 Completed work for Precept Paper Co. on credit, $1,700 10 Paid for the supplies purchased on credit on December 3 14 Paid for the annual $960 premium on an insurance policy Received payment in full from Precept Paper Co. for the work complete 18 on December 8. 271 The company paid S650 cash in dividends to the owner. (sole sharehold 30 Paid $175 cash for the December ütility bills. 301 Received $2,000 from a client for financul services to be rendered next fear. Prepare general journal entries to record these transactions

Explanation / Answer

DATE PARTICULARS DEBIT CREDIT 1Dec Cash a/c Dr. $15,000 Equipment a/c Dr. $5,000 To Capital a/c $20,000 (being cash and equipment brought in) 2Dec Equipment a/c Dr. $1,200 To Account payable a/c $1,200 (being equipment purchased) 3Dec Office supplies a/c Dr. $300 To Account payable a/c $300 (being office supplies purchased on credit) 4Dec Cash a/c Dr. $900 To Service Revenue $900 (being cash received) 8Dec Percept Paper Co. a/c Dr. $1,700 To Service Revenue a/c $1,700 (being service provided) 10Dec Account payable a/c Dr. $300 To Cash a/c $300 (being cash paid) 14Dec Insurance a/c Dr. $960 To Cash a/c $960 (being premium paid) 18Dec Cash a/c Dr. $1,700 To Percept Paper Co.a/c $1,700 (being cash received) 27Dec Dividend Payable a/c Dr $650 To Cash a/c $650 (being dividend paid) 30Dec Utility Bills a/c Dr. $175 To Cash a/c $175 (being cash paid) 30Dec Cash a/c Dr. $2,000 To Unearned revenue a/c $2,000 (being cash received in advance)

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