Question

Innovative Consulting has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Retained Earnings; Dividends; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.
Transactions
Mar. 1 Paid rent for the month, $4,000.
3 Paid advertising expense, $1,350.
5 Paid cash for supplies, $1,800.
6 Purchased office equipment on account, $11,500.
10 Received cash from customers on account, $8,600.
15 Paid creditor on account, $3,180.
27 Paid cash for miscellaneous expenses, $700.
30 Paid telephone bill for the month, $550.
31 Fees earned and billed to customers for the month, $37,200.
31 Paid electricity bill for the month, $830.
31 Paid dividends, $2,000.
Journalize the preceding selected transactions for March 2018 in a two-column journal. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
Zenith Consulting Co.
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Office Equipment
LIABILITIES
21 Accounts Payable
EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
REVENUE
41 Fees Earned
EXPENSES
51 Rent Expense
52 Advertising Expense
53 Utilities Expense
54 Miscellaneous Expense

Answer 1

Answer:

Innovative Consulting

General Journal

Date         Account Details               Debit           Credit

Mar. 1       51 Rent Expense              $4,000

                11 Cash                                                 $4,000

To record the payment for rent for the month.

Mar. 3      52 Advertising Expense $1,350

                11 Cash                                                 $1,350

To record the payment for advertising expense.

Mar. 5     13 Supplies                      $1,800

               11 Cash                                                 $1,800

To record the payment for supplies.

Mar. 6    14 Office Equipment      $11,500

              21 Accounts Payable                         $11,500

To record the purchase of office equipment on account.

Mar. 10  11 Cash                          $8,600

             12 Accounts Receivable                     $8,600

To record the receipt of cash from customers.

Mar. 15    21 Accounts Payable  $3,180

               11 Cash                                                 $3,180

To record the payment of creditor on account.

Mar. 27   54 Miscellaneous Expense $700

               11 Cash                                                 $700

To record the payment of Miscellaneous expense.

Mar. 30   53 Utilities Expense       $550

               11 Cash                                                 $550

To record the payment of telephone bill.

Mar. 31    2 Accounts Receivable $37,200

              41 Fees Earned                                 $37,200

To record fees earned and billed to customers for the month.

Mar. 31   53 Utilities Expense       $830

               11 Cash                                                 $830

To record the payment of electricity bill.

Mar. 31   33 Dividends                $2,000

               11 Cash                                                 $2,000

To record the payment of dividends to shareholders.

Explanation:

Innovative Consulting records business transactions as they occur on a daily basis in the general journal.  Journal entries are the first set of records in the accounting books.  They identify the accounts to be debited and the accounts to be credited in the general ledger.