Question

Journalize the following transactions for Pharoah Company. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Sept. 1 Purchased supplies for $1,050 cash. 5 Paid $440 cash dividend to stockholders. 7 Received $5,800 down payment from customer for services to be provided in the future. 16 Received $800 cash from a previously billed customer for payment of services provided in the prior month. 22 Purchased equipment for $3,300 by paying $1,250 cash and issued a note payable for the balance.

Answer 1

Answer:

Sep 1

Dr Supplies                     1,050

Cr Cash                          1,050

(to record purchase of supplies by cash)

Sep 5

Dr Retained Earnings             440

Cr Cash                                   440

(to record cash dividend payment)

Sep 7

Dr Cash                              5,800

Cr Unearned revenue      5,800

(to record cash receipt from unearned revenue)

Sep 16

Dr Cash                                 800

Cr Account Receivable       800

( to record collection of receivable)

Sep 22

Dr Equipment                  3,300

Cr Cash                            1,250

Cr Note payable              2,050

(to record the purchase of equipment)

Explanation:

Sep 1: Supplies goes up by 1,050 or Debit 1,050; Cash goes down by the same amount or Credit 1,050 as supplies are purchased by cash;

Sep 5: Dividend is paid from Retained earning account so Retained earning account goes down (Dr) by 440; Cash goes down (credit) as it is distributed as dividend to shareholders at the same amount 440;

Sep 7: Cash increases (Dr) by 5,800 followed the cash receipt while Unearned revenue (Liability account) increases (credit) as the revenue is not earned.  

Sep 16: This is the account receivable's collection activities as revenue had already been delivered and billed last period. So Cash increases (Dr) by $800 and Account receivable decreases (Cr) by the same amount.

Sep 22: Equipment goes up (Dr) by $3,300 while Cash goes down (Cr) 1,250 and Note Payable goes up (Cr) by $2,050 (3,300-1,250) to finance for the purchase.

Answer 2

Answer:

Journalize the following transactions for Pharoah Company.

Explanation:

1.  

Supllies                             1050  

Cash                                  1050

5.  

Retained earnings              440  

dividen Payable                  440

7.  

Cash                            5800  

deferred revenue                 5800

16.  

Cash                             800  

Account receivable           800

33.  

Equipment                    3300  

cash                                    1250

Account  payable                   2050