Question

Quick Cleaners, Inc. (QCI), has been in business for several years. It specializes in cleaning houses but has some small business clients as well. Issued $22,000 of QCI stock for cash. Incurred $815 of utilities costs this month and will pay them next month. Incurred and paid wages for the current month, totaling $3,150. Performed cleaning services on account worth $4,350. Some of Quick Cleaners’s equipment was repaired at a total cost of $248. The company paid the full amount at the time the repair work was done.
Required:
Prepare journal entries for the above transactions, which occurred during a recent month.

Answer 1

Answer:

DR Cash .......................................................................$22,000

CR Common Stock.....................................................................$22,000

(To record receipts from issuance of common stock)

DR Utilities expense ...................................................$815

CR Utilities expense..............................................................$815

(To record utilities liability)

DR Wages expense .....................................................$3,150

CR Cash.........................................................................................$3,150

(To record payment of wages)

DR Account Receivables .............................................$4,350

CR Revenue ...................................................................................$4,350

(To record services on account)

DR Repairs and Maintenance expense account...............$248

CR Cash...................................................................................................$248

(To record repairs made to equipment)