Baker Incorporated specializes in training and veterinary services for househol

Question

Baker Incorporated specializes in training and veterinary services for househol pets, such as dogs, birds, lizards, fish, and cats. Afhter the first 11 monts of operations in 2018, Baker has the following account Prepaid Rent Equipment 820 Accounts Payable Deterred Revenue 9.500 Common Stock Retaned Eamings 145000 Service Revenue Salanes Expense Advertising Expense Utites Expense 250 000 100 000 30 700 458 100 $458 100 The tolowirng transactions occur during December 2018 December 1-31 Throughout the month Baker provides services to customers for cash, $25,400. (Hint: Record the entire month's services in a single entry) December 4 Purchase pet supplies on account, $2,700 December Pay for iers to be distributed to local residenoes to advertise the oompany's services $3,100 December 9 Pay for supplies purchased on December 4 December 12 Issue adsitional shares of common stock for cash $6.000 December 16 Pay cash on accounts payable o,000 December 19 Purchase equipment with cash, $7,800 December 22 Pay stiities for December $4,400 December 24 Recelve cash from customers for services to be provided next January $2 500 December 27 One of Baker's trainers takes a part-time job at the zoo and eams a saiary of $1.300 The z0o and Baker are separate companies December 30 Pay employees salaries for the current month, $10.000 December 31 Pay dividends to stockholders $3 000 1, Record eah trasacton (I' no entry is required for a transactionevent. selectaNoprnal entry required, in the test accourt heid.)

Explanation / Answer

Journal Entries 1-Dec Cash Dr.          25,400 To Service Revenue      25,400 4-Dec Purchase Dr.            2,700 To Account Payables         2,700 8-Dec Advertisment expenses Dr.            3,100 To Cash         3,100 9-Dec Account Payables Dr.            2,700 To Cash         2,700 12-Dec Cash Dr.            6,000 To Share Capital         6,000 16-Dec Account Payable Dr.            6,600 To Cash         6,600 19-Dec Equipement Dr.            7,800 To Cash         7,800 22-Dec Utilities Dr.            4,400 To Cash         4,400 22-Dec Cash Dr.            2,500 To Deferred Revenue         2,500 27-Dec No Entry required 30-Dec Salary Dr.          10,000 To Cash      10,000 31-Dec Dividend Dr.            3,000 To Cash         3,000

Trail Balance as on Dec 31 Accounts Debit Credit Cash            9,600 Supplies            5,300 Prepaid Rent            4,800 Equipement          89,900 Buildings       200,000 Account Payable                            2,900 Deferred Revenue                            5,900 Common Stock                       151,000 Retained Earnings                          50,200 Dividends          12,000 Service Revenue                       275,400 Salaries Expenses       110,000 Advertisment Expenses          18,700 Utilities Expenses          35,100 Unearnerd Income Total       485,400                       485,400                -  

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.