The auction price of the game system is higher than the
2 answers:
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Answer:
For Part 1, 3 and 4 Please see the attached images.
For Part 2 Please see the solution below.
Explanation:
Part - 1:
Please see the attached picture.
Part - 2:
August 3rd:
Debit: Cash $1,200
Credit: Accounts Receivable $1,200
To record collection of cash from debtors.
August 5:
Debit: Cash $1,300
Credit: Common Stock $1,300
To record receiving cash from issuing common stocks.
August 6:
Debit: Accounts Payable $2,700
Credit: Cash $2,700
To record payment to creditors.
August 7:
Debit: Cash $3,000
Debit: Accounts Receivable $3,500
Credit: Services $6,500
To record earnings from services on cash and on accounts.
August 12:
Debit: Equipment $1,200
Credit: Cash $400
Credit: Accounts Payable $800
To record purchase of equipment on cash and on accounts.
August 14:
Debit: Salaries Expense $3,500
Credit: Cash $3,500
To record payment of salaries.
Debit: Rent Expense $900
Credit: Cash $900
To record payment of Rent.
Debit: Advertising expense $275
Credit: Cash $275
To record payment of advertising expenses.
August 18:
Debit: Cash $3,500
Credit: Accounts Receivable $3,500
To record cash collection from debtors.
August 20:
Debit: Dividends Payable $500
Credit: Cash $500
To record payment of dividends payable.
August 24:
Debit: Accounts Receivable $1,000
Credit: Services $1,000
To record services performed on accounts.
August 26:
Debit: Cash $2000
Credit: Accounts Payable $2,000
To record note payable from Laurentian Bank within 6 months.
August 27:
No Transaction needed. If the prepayment has been made by client then then transaction would have been recorded. But neither Payment is received in advance nor services have been performed in advance, So no transaction needs to be recorded at this moment.
August 28:
Debit: Utilities Expense $275
Credit: Accounts Payable $275
To record utilities expense occurred and due in September.
August 31: paid income tax for the month of $500.
Debit: Income Tax $500
Credit: Cash $500
To record payment of Income Tax.
Part 3:
Please see the attached Picture.
Part 4:
Please see the attached Picture.
