Question

ave a cash refund of $750 to a customer because of a lost package. (The customer had previously paid in cash.) Sent a check for $1,050 to the utility company to pay the monthly bill. Provided services for $7,800 on credit. Purchased new equipment for $4,600 and paid for it immediately by check. Issued a check for $3,500 to pay a creditor on account. Performed services for $15,250 in cash. Collected $6,250 from credit customers. The owner made an additional investment of $25,000 in cash. Purchased supplies for $3,250 on credit. Issued a check for $3,750 to pay the monthly rent. Analyze the above transactions and record a journal entry for each transaction.

Answer 1

Explanation:

The Journal Entry is given below:-

1. Fees income Dr,            $750

       To cash                              $750

(Being fees income is recorded)

2. Utilities expense Dr,      $1,050

       To cash                                $1,050

(Being utilities expense is recorded)

3. Accounts receivable Dr,  $7,800

        To fee income                       $7,800

(Being services provided is recorded)

4. Equipment Dr,                   $4,600

        To cash                                   $4,600

(Being equipment purchase is recorded)

5. Accounts payable Dr,         $3,500

         To cash                                  $3,500

(Being payment of is recorded)

6. Cash Dr,                                 $15,250

         To fee income                         $15,250

(Being cash receive is recorded)

7. Cash Dr,                                   $6,250

         To Accounts Receivable         $6,250

(Being cash receive is recorded)

8. Cash Dr,                                   $25,000

           To capital                                $25,000

(Being additional investment is recorded)

9. Supplies Dr,                              $3,250

          To accounts payable               $3,250

(Being purchase of supplies is recorded)

10. Rent expense Dr,                     $3,750

          To cash                                      $3,750

(Being rent expenses is recorded)