Question

TRANSACTIONSGave a cash refund of $750 to a customer because of a lost package.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

Answer:

Journal entries

Service Revenue                               Debit         $ 750

Cash                                                   Credit                          $ 750

To record refund to customer for lost package

Utility Expenses                                 Debit          $ 1,050

Cash                                                    Credit                          $ 1,050

To record payment of utility company bill in cash

Accounts Receivable                         Debit         $ 7,800

Service Revenue                                Credit                          $ 7,800

To record receivables for services provided on credit

Equipment                                          Debit          $ 4,600

Cash                                                    Credit                            $ 4,600

To record purchase of equipment for cash

Accounts payable                               Debit          $ 3.500

Cash                                                     Credit                          $ 3,500

To record payment to creditors

Cash                                                     Debit         $ 15,250    

Service revenue                                  Credit                          $ 15,250

To record services provided on cash

Cash                                                      Debit        $ 6,250

Accounts receivables                           Credit                         $ 6,250

To record collections from customers

Cash                                                      Debit        $ 25,000

Capita account Owner                        Credit                           $ 25,000

To record capital contribution from owner

Supplies                                                Debit        $  3,250    

Accounts payable                                 Credit                          $ 3,250

To record purchase of supplies on credit

Rent expense                                        Debit      $ 3,750

Cash                                                       Credit                          $ 3,750

To record payment of monthly rent

Explanation: