Answered

On april 1, Windsor, Inc. began operations. The following transactions were completed during the month.

1. Issued common stock for $28,300 cash.
2. Obtained a bank loan for $8,300 by issuing a note payable.
3. Paid $13,000 cash to buy equipment.
4. Paid $1,400 cash for April office rent.
5. Paid $1,700 for supplies.
6. Purchased $710 of advertising in the Daily Herald, on account.
7. Performed services for $21,200: cash of $2,360 was received from customers, and the balance of $18,840 was billed to customers on account.
8. Paid $470 cash dividend to stockholders.
9. Paid the utility bill for the month, $2,360.
10. Paid Daily Herald the amount due in transaction (6).
11. Paid $50 of interest on the bank loan obtained in transaction (2).
12. Paid employees’ salaries, $7,550.
13. Received $14,160 cash from customers billed in transaction (7).
14. Paid income tax, $1,770.

Required:
Journalise the transactions.

Answer :

Tundexi

Answer:

S/n   General Journal     Debit    Credit

1.       Cash                     $28,300

             Common stock              $28,300

      (To record issuance of common stock)  

2.       Cash                      $8,300

             Note payable               $8,300

        (To record issuance of note payable)  

3.      Equipment             $13,000

              Cash                                $13,000

        (To record purchase of equipment)  

4.    Rent expense          $1,400  

              Cash                                 $1,400

          (To record rent expense)

5.     Supplies                    $1,700

              Cash                                 $1,700

        (To record purchase supplies )  

6.     Advertising expense  $710

             Accounts payable             $710

         (To record advertising expense)  

7.       Cash                          $2,360

        Accounts receivable $18,840

            Service revenue                 $21,200

        (To record service revenue)  

8.      Cash dividends        $470

                Cash                                  $470

        (To record cash paid for dividends )  

9.       Utilities expense       $2,360

                 Cash                                 $2,360

        (To record utilities expense)  

10.       Accounts payable     $710

                 Cash                                 $710

         (To record payment to creditors)  

11.          Interest expense       $50

                  Cash                                 $50

         (To record interest expense)

12.        Salaries and wages     $7,550

            expense

                     Cash                                $7,550

             (To record salaries and wages expense)  

13.         Cash                              $14,160

                     Accounts receivable      $14,160

           (To record amount received from customers)

14.        Tax Expenses                 $1,770

                    Account payable               $1,770

            (To record income tax expenses)

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