Please provide the correct journal entries.
1. Stockholders invest an additional $19,000 in the business.
2. Purchased supplies on account (did not pay cash) $800.
3. Paid office rent of $600 for the month.
4. Completed a consulting assignment and billed ABC Co. $1,700 for services rendered.
5. Received $2,900 cash advance from Anthony Inc. on future consulting services.
6. Completed a consulting assignment and received $2,400 for the services performed.
7. Paid for insurance coverage for the year (January through December) $1,800.
8. Received $1,000 from ABC Co. (see transaction #4).
9. Paid secretary $2,500 for five weeks from 12/29/2014 - 1/30/2015.
10. Declared and paid a dividend to stockholders of $400.
Solution
Journal Entries
1. Bank a/c Dr $19000
To Share capital a/c $19000
(Being additional capital received from share holders)
2. Supplies a/c Dr $800
To Creditor a/c $800
(Being supplies purchased on account)
3. Rent a/c Dr $600
To Bank a/c $600
(Being office rent paid)
4. ABC Co. a/c Dr $1700
To Profit & Loss a/c $1700
(Being revenue recognized)
5. Cash a/c Dr $2900
To Anthony Inc a/c $2900
(Being advance received for future work)
6. Bank a/c Dr $2400
To Profit & Loss a/c $2400
(Being revenue realized)
7. Insurance a/c Dr $1800
To Bank a/c $1800
(Being insurance paid)
8. Bank a/c Dr $1000
To ABC Co. a/c $1000
(Being amount for services rendered partly received.)
9. Salary a/c Dr $2500
To Bank a/c $2500
(Being salary paid)
10. Dividend a/c Dr $400
To bank a/c $400
(Being Dividend paid)
Profit & Loss a/c $400
To Dividend a/c $400
(Being dividend charged)
.
Please provide the correct journal entries- 1- Stockholders invest an.docx
1. Please provide the correct journal entries.
1. Stockholders invest an additional $19,000 in the business.
2. Purchased supplies on account (did not pay cash) $800.
3. Paid office rent of $600 for the month.
4. Completed a consulting assignment and billed ABC Co. $1,700 for services rendered.
5. Received $2,900 cash advance from Anthony Inc. on future consulting services.
6. Completed a consulting assignment and received $2,400 for the services performed.
7. Paid for insurance coverage for the year (January through December) $1,800.
8. Received $1,000 from ABC Co. (see transaction #4).
9. Paid secretary $2,500 for five weeks from 12/29/2014 - 1/30/2015.
10. Declared and paid a dividend to stockholders of $400.
Solution
Journal Entries
1. Bank a/c Dr $19000
To Share capital a/c $19000
(Being additional capital received from share holders)
2. Supplies a/c Dr $800
To Creditor a/c $800
(Being supplies purchased on account)
2. 3. Rent a/c Dr $600
To Bank a/c $600
(Being office rent paid)
4. ABC Co. a/c Dr $1700
To Profit & Loss a/c $1700
(Being revenue recognized)
5. Cash a/c Dr $2900
To Anthony Inc a/c $2900
(Being advance received for future work)
6. Bank a/c Dr $2400
To Profit & Loss a/c $2400
(Being revenue realized)
7. Insurance a/c Dr $1800
To Bank a/c $1800
(Being insurance paid)
8. Bank a/c Dr $1000
To ABC Co. a/c $1000
(Being amount for services rendered partly received.)
9. Salary a/c Dr $2500
To Bank a/c $2500
(Being salary paid)
10. Dividend a/c Dr $400
To bank a/c $400
(Being Dividend paid)
Profit & Loss a/c $400
To Dividend a/c $400
(Being dividend charged)
