Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

Financial Accounting Question..... Journalize Each Transaction?

Kara Shin is a licensed CPA. During the first month of operations of her business, Kara Shin, Inc., the following events and transactions occurred.

May 1 Stockholders invested $20,000 cash in exchange for common stock.

2 Hired a secretary-receptionist at a salary of $2,000 per month.

3 Purchased $1,500 of supplies on account from Hartig Supply Company.

7 Paid office rent of $900 cash for the month.

11 Completed a tax assignment and billed client $2,800 for services provided.

12 Received $3,500 advance on a management consulting engagement.

17 Received cash of $1,200 for services completed for Lucille Co.

31 Paid secretary-receptionist $2,000 salary for the month.

31 Paid 40% of balance due Hartig Supply Company.

Kara uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Common Stock, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.

Journalize each transaction.....

4 Answers

Relevance
  • 8 years ago
    Favorite Answer

    May 1

    Debit Cash' $ 20,000

    Credit 'Common Stock' $ 20,000

    ---------

    May 2

    No entry. Merely hiring someone is not a financial transaction.

    -------

    May 3

    Debit 'Supplies' $ 1,500

    Credit 'Accounts Payable' $ 1,500

    -------

    May 7

    Debit 'Rent Expense' $ 900

    Credit 'Cash' $ 900

    -------

    May 11

    Debit 'Accounts Receivable' $ 2,800

    Credit 'Service Revenue' $ 2,800

    -------

    May 12

    Debit 'Cash' $ 3,500

    Credit 'Unearned Service Revenue' $ 3,500

    --------

    May 17

    Debit 'Cash' $ 1,200

    Credit 'Service Revenue' $ 1,200

    --------

    May 31

    Debit 'Salaries and Wages Expense' $ 2,000

    Credit 'Cash' $ 2,000

    --------

    May 31

    Debit 'Accounts Payable' $ 600 ......................... ($ 1,500 x 0.40)

    Credit 'Cash' $ 600

  • 7 years ago

    Prepare a trial balance on May 31, 2014.

  • Anonymous
    5 years ago

    I want to know this too

  • Anonymous
    5 years ago

    Honestly, I am not convinced

Still have questions? Get your answers by asking now.