enith Consulting Co. has the following accounts in its ledger: Cash; Accounts Re

Question

enith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Retained Earnings; Dividends; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.

Journalize the preceding selected transactions for March 2018 in a two-column journal. Refer to the Chart of Accounts for exact wording of account titles.

Transactions Mar. 1 Paid rent for the month, $4,000. 3 Paid advertising expense, $1,350. 5 Paid cash for supplies, $1,800. 6 Purchased office equipment on account, $11,500. 10 Received cash from customers on account, $8,600. 15 Paid creditor on account, $3,180. 27 Paid cash for miscellaneous expenses, $700. 30 Paid telephone bill for the month, $550. 31 Fees earned and billed to customers for the month, $37,200. 31 Paid electricity bill for the month, $830. 31 Paid dividends, $2,000.

Explanation / Answer

Mar-01 Rent expenses $    4,000 Cash $    4,000 (To record payment of rent for the month) Mar-03 Advertising expenses $    1,350 Cash $    1,350 (To record payment advertising expenses for the month) Mar-05 Supplies $    1,800 Cash $    1,800 (To record payment for supplies) Mar-06 Office equipment $ 11,500 Accounts payable $ 11,500 (To record purchase of office equipment on account) Mar-10 Cash $    8,600 Accounts receivable $    8,600 (To record cash receipt from customers on account) Mar-15 Accounts payable $    3,180 Cash $    3,180 (To record payment to creditors on account) Mar-27 Misc. expenses $        700 Cash $        700 (To record payment for misc. expenses) Mar-30 Utilities expenses $        550 Cash $        550 (To record payment for telephone expenses for the month) Mar-31 Accounts receivable $ 37,200 Fees earned $ 37,200 (To record fee earned and billed to customer for the month) Mar-31 Utilities expenses $        830 Cash $        830 (To record payment for electricity bill for the month) Mar-31 Dividends $    2,000 Cash $    2,000 (To record payment of dividends)

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