Question

Innovative 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 following selected transactions for October 20Y2 in a two-column journal. Journal entry explanations may be omitted.

Oct. 1 Paid rent for the month, $2,500.
4 Paid advertising expense, $600.
5 Paid cash for supplies, $1,200.
6 Purchased office equipment on account, $9,200.
12 Received cash from customers on account, $15,900.
20 Paid creditor on account, $3,410. 27 Paid cash for miscellaneous expenses, $550.
30 Paid telephone bill for the month, $400.
31 Fees earned and billed to customers for the month, $50,170.
31 Paid electricity bill for the month, $830.
31 Paid dividends, $1,850.

Answer 1

Answer:

Please see the Journal Entry below for Innovative Consulting Co.

Explanation:

Oct. 1

Debit: Rent Expense $2,500

Credit: Cash $2,500

Oct. 4

Debit: Advertising Expense $600

Credit: Cash $600

Oct. 5

Debit: Supplies $1,200

Credit: Cash $1,200

Oct. 6

Debit: Office Equipment $9,200

Credit: Accounts Payable $9,200

Oct. 12

Debit: Cash $15,900

Credit: Accounts Receivable $15,900

Oct. 20

Debit: Accounts Payable $3,410

Credit: Cash $3,410

Oct. 27

Debit: Miscellaneous Expense $550

Credit: Cash $550

Oct. 30

Debit: Utilities Expense $400

Credit: Cash $400

Oct. 31

Debit: Accounts Receivable $50,170

Credit: Fees Earned $50,170

Oct. 31

Debit: Utilities Expense $830

Credit: Cash $830

Oct. 31

Debit: Dividends $1,850

Credit: Cash $1,850