Question

Following are the January transactions:

Answer 1

Answer:

The journal entries to record the transactions are given below.

Received a $665 deposit from a customer who wanted her piano rebuilt in February.

Debit Cash Asset                             $ 665

Credit Advances from customers   $ 665

Rented a part of the building to a bicycle repair shop; $685 rent received for January.

Debit Cash Asset          $ 685

Credit Rental income    $ 685

Delivered five rebuilt pianos to customers who paid $18,675 in cash.

Debit Cash Asset      $ 18,675

Credit Sales income  $ 18,675

Delivered two rebuilt pianos to customers for $9,600 charged on account.

Debit Account Receivable Asset   $ 9,600

Credit Sales Income                        $ 9,600                        

Received $8,000 from customers as payment on their accounts.

Debit Cash Asset                 $ 8000

Credit Receivable Asset      $ 8000

Received an electric and gas utility bill for $395 for January services to be paid in February.

Debit Utility Expense       $ 395

Credit Payable Liability    $ 395

Ordered $1,255 in supplies.

No entry required

Paid $2,600 on account in January.

Debit Payable Liability   $ 2,600

Credit Cash Asset          $ 2,600

Paid $12,200 in wages to employees in January for work done this month.

Debit Wage expense  $ 12,200

Credit Cash Asset        $ 12,200  

Received and paid cash for the supplies in (g).

Debit Cash Asset     $ 1,255

Credit Sales income $ 1,255