Week 2 Exercise 1 Copy
NAME
Week 2, Exercise 1
November 16, 2014
XACC/290
Week 2, Exercise 1
(a)
1. Stockholders invested $20,000 cash in the business.
2. Purchased equipment for $5,000, paying $1,000 in cash and the balance of $4,000 on account.
3. Paid $750 in cash for supplies.
4. Earned $9,500 in revenue, receiving $4,100 in cash and $5,400 on A/R.
5. Paid $1,500 in cash on accounts Payable.
6. Paid $2,000 in cash dividends to stockholders.
7. Paid $800 in cash as expenses (rent).
8. Earned $450 in cash from consumers on account.
9. Paid $3,000 as salaries.
10. Incurred $300 of utilities expense on account.
(b)
Service Revenue 9,500
Dividends
-2,000
Rent Expense
-800
Salaries Expense
-3,000
Utilities Expense
-300
Total Equity Increase
3,400
(c)
Service Revenue 9,500
Rent Expense
-800
Salaries Expense
-3,000
Utilities Expense
-300
Net Income
5,400
General Journal
Date
Account Titles
Debit
Credit
May 4
Accounts Payable
700
Cash
700
7
Accounts Receivable
6800
Service Revenue
6800
8
Supplies
850
Accounts Payable
850
9
Equipment
1000
Cash
1000
17
Expense
530
Cash
530
22
Expense
900
Accounts Payable
900
29
Accounts Payable
1200
Cash
1200
(a)
General Journal
Date
Account Titles
Debit
Credit
Apr. 1
Cash
18,000
Common Stock
18,000
(Issued shares of stock for cash)
1
No entry—not a transaction.
2
Rent Expense 900
Cash
900
(Paid monthly office rent)
3
Supplies
1,300
Accounts Payable
1,300
(Purchased supplies on account from Spring Green Company)
10
Accounts Receivable 1,900
Service Revenue
1,900
(Billed clients for services rendered)
11
Cash
700
Unearned Service Revenue
700
(Received cash advance for future service)
20
Cash
2,800
Service Revenue
2,800
(Received cash for revenue earned)
30
Salaries and Wages Expense 1,500
Cash
1,500
(Paid monthly salary)
30
Accounts Payable 300
Cash
300
Week 2, Exercise 1
November 16, 2014
XACC/290
Week 2, Exercise 1
(a)
1. Stockholders invested $20,000 cash in the business.
2. Purchased equipment for $5,000, paying $1,000 in cash and the balance of $4,000 on account.
3. Paid $750 in cash for supplies.
4. Earned $9,500 in revenue, receiving $4,100 in cash and $5,400 on A/R.
5. Paid $1,500 in cash on accounts Payable.
6. Paid $2,000 in cash dividends to stockholders.
7. Paid $800 in cash as expenses (rent).
8. Earned $450 in cash from consumers on account.
9. Paid $3,000 as salaries.
10. Incurred $300 of utilities expense on account.
(b)
Service Revenue 9,500
Dividends
-2,000
Rent Expense
-800
Salaries Expense
-3,000
Utilities Expense
-300
Total Equity Increase
3,400
(c)
Service Revenue 9,500
Rent Expense
-800
Salaries Expense
-3,000
Utilities Expense
-300
Net Income
5,400
General Journal
Date
Account Titles
Debit
Credit
May 4
Accounts Payable
700
Cash
700
7
Accounts Receivable
6800
Service Revenue
6800
8
Supplies
850
Accounts Payable
850
9
Equipment
1000
Cash
1000
17
Expense
530
Cash
530
22
Expense
900
Accounts Payable
900
29
Accounts Payable
1200
Cash
1200
(a)
General Journal
Date
Account Titles
Debit
Credit
Apr. 1
Cash
18,000
Common Stock
18,000
(Issued shares of stock for cash)
1
No entry—not a transaction.
2
Rent Expense 900
Cash
900
(Paid monthly office rent)
3
Supplies
1,300
Accounts Payable
1,300
(Purchased supplies on account from Spring Green Company)
10
Accounts Receivable 1,900
Service Revenue
1,900
(Billed clients for services rendered)
11
Cash
700
Unearned Service Revenue
700
(Received cash advance for future service)
20
Cash
2,800
Service Revenue
2,800
(Received cash for revenue earned)
30
Salaries and Wages Expense 1,500
Cash
1,500
(Paid monthly salary)
30
Accounts Payable 300
Cash
300