Question

Zenith 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.
Transactions
Mar. 1 Paid rent for the month, $2,100.
3 Paid advertising expense, $650.
5 Paid cash for supplies, $1,350.
6 Purchased office equipment on account, $9,300.
10 Received cash from customers on account, $15,600.
15 Paid creditor on account, $3,430.
27 Paid cash for miscellaneous expenses, $500.
30 Paid telephone bill for the month, $300.
31 Fees earned and billed to customers for the month, $51,230.
31 Paid electricity bill for the month, $840.
31 Paid dividends, $1,650.
Journalize the preceding selected transactions for March 2018 in a two-column journal. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
Zenith Consulting Co.
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Office Equipment
LIABILITIES
21 Accounts Payable
EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
REVENUE
41 Fees Earned
EXPENSES
51 Rent Expense
52 Advertising Expense
53 Utilities Expense
54 Miscellaneous Expense

Answer 1

Answer:

Zenith Consulting Co.

Journal entries:

Date        Description                      Debit              Credit

March 1:   Rent Expense                $2,100

                Cash Account                                       $2,100

To record payment of rent for the month.

March 3:  Advertising Expense     $650

               Cash Account                                       $650

To record advertising expense paid for the month.

March 5:  Supplies                       $1,350

                Cash Account                                     $1,350

To record the payment for supplies.

March 6:  Office Equipment        $9,300

                Accounts Payable                               $9,300

To record the purchase of office equipment on account.

March 10:  Cash Account          $15,600

                 Accounts Receivable                        $15,600

To record cash received from customers on account.

March 15:  Accounts Payable   $3,430

                 Cash Account                                    $3,430

To record the payment of creditor on account.

March 27:  Miscellaneous Expense $500

                  Cash Account                                     $500

To record the payment for miscellaneous expenses.

March 30: Utilities Expense           $300

                  Cash Account                                     $300

To record the payment of telephone bill for the month.

March 31:  Accounts Receivable      $51,230

                 Fees Earned                                        $51,230

To record fees earned and billed to customers for the month.

March 31:  Utilities Expense          $840

                  Cash Account                                      $840

To record the payment for electricity bill for the month.

March 31:  Dividends                    $1,650

                 Cash Account                                      $1,650

To record the payment of dividends.

Explanation:

A two-column journal has a debit column and a credit column for initial recording of business transactions.  A journal identifies the account to be debited and the one to be credited in the general ledger.