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.
