Question

The Ryan Express, provider of tax services, starts operations on 1/1/17. Now that the company has been in business for more than a year, the controller is assembling financial statements for the year ended 12/31/17. During 2017, the following transactions took place: 1. On January 1, 2017, shareholders paid $1,000,000 in cash for common stock. 2. Ryan Express earned revenue of $500,000 which increased Accounts Receivable (not cash). 3. Ryan Express paid $125,000 in salaries expense. 4. Ryan Express paid $75,000 in rent expense. 5. Ryan Express bought $25,000 of supplies but did not pay cash, so this increased Accounts Payable.6. Ryan Express paid $10,000 in travel expense. 7. Clients paid Ryan Express cash of $400,000 for transaction

Answer 1

Answer:

cash   1,000,000 debit

           Common Stock     1,000,000 credit

account receivables 500,000 debit

           Accounts payable     500,000 credit

salaries expense   125,000 debit

rent expense          75,000 debit

             cash                         200,000 credit

supplies              25,000 debit

         Accounts payable   25,000 credit

Cash           400,000 debit

  Service revenue    400,000 credit

Explanation:

We reocrd the entries among the joural considering debit = credit