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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
- anonymousLv 78 years agoFavorite Answer
May 1
Debit Cash' $ 20,000
Credit 'Common Stock' $ 20,000
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May 2
No entry. Merely hiring someone is not a financial transaction.
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May 3
Debit 'Supplies' $ 1,500
Credit 'Accounts Payable' $ 1,500
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May 7
Debit 'Rent Expense' $ 900
Credit 'Cash' $ 900
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May 11
Debit 'Accounts Receivable' $ 2,800
Credit 'Service Revenue' $ 2,800
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May 12
Debit 'Cash' $ 3,500
Credit 'Unearned Service Revenue' $ 3,500
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May 17
Debit 'Cash' $ 1,200
Credit 'Service Revenue' $ 1,200
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May 31
Debit 'Salaries and Wages Expense' $ 2,000
Credit 'Cash' $ 2,000
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May 31
Debit 'Accounts Payable' $ 600 ......................... ($ 1,500 x 0.40)
Credit 'Cash' $ 600
- Anonymous5 years ago
I want to know this too
- Anonymous5 years ago
Honestly, I am not convinced