Question

On April 1, Tamarisk, Inc. began operations. The following transactions were completed during the month.

Answer 1

Answer:

Given below

Explanation:

Tamarisk, Inc.

Genral Journal

No.        Account Titles and Explanation          Debit             Credit

1.               Cash                                                $21,600 Dr

                        Common Stock                                            $21,600 Cr

Issued common stock for $21,600 cash. Cash is received and stock is issued.

2.           Cash                                             $6,300 Dr

                  Note payable                                                    $6,300 Cr

Obtained a bank loan for $6,300 by issuing a note payable. Cash is received and the liability is also increased.

3.          Equipment                                  $9,900 Dr

                             Cash                                                    $9,900 Cr

 Equipment    is bought by paying cash.

4.           Office rent                                  $1,100  Dr

                                         Cash                                        $1,100 Cr

 Office rent is paid through cash.

5.                         Supplies                        $1,300  Dr

                                         Cash                                       $1,300 Cr

Supplies   are bought for   $1,300  cash.

6.              Advertising Expense               $540  Dr

                        Accounts Payable Daily Herald              $540 Cr

    Advertising is purchased on accounts of  Daily Herald for $540

7.                                 Cash                             $1,800  Dr

                      Accounts Receivable      $14,400  Dr

                                            Revenue                            $16,200 Cr

Performed services for $16,200, cash of $1,800 is received from customers, and the balance of $14,400 is billed to customers on account.

8.                       Dividends                    $360  Dr

                             Cash                                                    $360 Cr

Paid $360 dividend to stockholders.

9.                   Utilities                      $1,800  Dr

                              Cash                                                $1,800 Cr

Utility bill is paid for the month, $1,800.

10.        Accounts Payable Daily Herald              $540   Dr

                                  Cash                                                  $540 Cr

Advertising bought on accounts is paid in cash $ 540.

11.              Interest Expense                       $40  Dr

                              Cash                                                   $40 Cr

Paid $40 of interest on the bank  for the loan of   $6,300 obtained from the bank.  

12.                 Salaries                          $5,760  Dr

                             Cash                                                 $5,760 Cr

Salaries for  $5,760 are paid in cash.

13.             Cash                                       $14,400  Dr

                            Accounts Receivable                       $14,400 Cr

Cash is received for the balance of $14,400 billed to customers on account for services performed.

14.              Tax Expense                        $1,350  Dr

                             Cash                                                 $1,350 Cr

Cash $1,350 is paid as Tax.