Acc/290 Week 3 Exercise E-4

Exercise E-4 a) Describe each transaction 1. $20,000 in cash is invested in exchange for common stock 2. $5000 in equipment is received, with $1000 paid in cash, and $4000 billed through Accounts Payable 3. $750 cash is paid for supplies 4. $9500 in services was preformed, with $4100 paid for in cash, and $5400 billed through Accounts Receivable 5. $1500 was paid to Accounts Payable 6. $2000 was paid in cash in dividends 7. $800 cash was paid for rent 8. $450 cash was received for Accounts Receivable 9. $3000 cash was paid for salaries 10. $300 was billed through Accounts Payable for Utilities b) Determine
9500-2000-800-3000-300-4000+1500-300= $200 c) Compute the net income for the month b. 9500-5000-750-1500-800+450-3000-300= -$1400
Exercise E3-9 Date | Account | Debits | Credits | May 4 | Cash | $700 | | | Accounts Payable | | $700 | May 7 | Accounts Receivable | $6800 | | | Performed services | | $6800 | May 8 | Accounts Payable | $850 | | | Supplies | | $850 | May 9 | Cash | $1000 | | | Equipment | | $1000 | May 17 | Cash | $530 | | | Salary | | $530 | May 22 | Accounts Payable | $900 |
Madison to design a new home. 20 Received $2,800 cash for services completed and delivered to
M. Svetlana.

30 Paid secretary-receptionist for the month $1,500.

30 Paid $300 to Spring Green Company for accounts payable due.
The company uses these accounts: Cash, Accounts Receivable, Supplies, Accounts Payable,
Unearned Service Revenue, Common Stock, Service Revenue, Salaries and Wages Expense, and Rent Expense.

Instructions
(a) Journalize the transactions, including explanations. Date | Account | Debits | Credits | April 1 | Common Stock | $18000 | | | Cash | | $18000 | | Stockholder investment | | | April 1 | Accounts Payable | $1500 | | | Salaries and Wages Expense | | $1500 | | Hired secretary-payable monthly | | | April 2 | Cash | $900 | | | Rent Expense | | $900 | | Rent for April | | | April 3 | Cash | $1300 | | | Supplies | | $1300 | | Purchased architectural supplies from Spring Green Company | | | April 10 | Service Revenue | $1900 | | | Accounts Receivable | | $1900 | | Completed Blueprints on Carport | | | April 11 | Unearned Service Revenue | $700 | | | Cash | | $700