Question Completion:
Prepare the necessary journal entries without the narration.
Answer:
FedEx
a. Debit Cash $17,600
Debit Accounts Receivable $21,704
Credit Service Revenue $39,304
b. Debit Equipment $3,434
Credit Note Payable (long-term) $3,434
c. Debit Rent Expense $10,136
Debit Prepaid Rent $3,728
Credit Cash Account $13,864
d. Debit Maintenance Expense $3,864
Credit Cash Account $3,864
e. Debit Cash Account $24,285
Credit Accounts Receivable $24,285
f. Debit Long-term Notes Payable $350
Credit Cash Account $350
g. Debit Cash Account $320
Credit Common Stock $2
Credit Additional paid-in capital $318
h. Debit Salaries and Wages Expense $15,276
Credit Cash Account $15,276
i. Debit Spare parts, supplies, and fuel Expense $8,564
Credit Cash Account $8,564
j. Debit Accounts Payable $784
Credit Cash Account $784
k. No journal is required.
Explanation:
With the above journal entries, the accountants at FedEx have recorded the listed business transactions for the first time in the accounts of FedEx. From the entries, these transactions will then be posted to the general ledger where accounts, transactions, and business events are summarized.
