Carla Vista Computer Corporation had the following opening account balances at t
ID: 2337096 • Letter: C
Question
Carla Vista Computer Corporation had the following opening account balances at the end of April: Cash $ 4,700; Accounts Receivable $6,400; Accounts Payable $ 1,900; Common Shares $ 4,800; and Retained Earnings $ 4,400. It entered into the following transactions during the month of May:
Journalize the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
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Enter a debit amount
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Enter a debit amount
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Enter an account title
Enter a debit amount
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Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
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List of Accounts
1. Purchased equipment on account for $ 8,300. 2. Paid $ 1,600 for rent for the month of May. 3. Provided computer services for $ 3,400 on account. 4. Paid Ontario Hydro $ 200 cash for utilities used in May. 5. Borrowed $ 19,900 from the bank. 6. Paid supplier for equipment purchased in transaction 1. 7. Purchased a one-year accident insurance policy for $ 600 cash. 8. Received $ 2,700 cash in partial payment of the account owed in transaction 3. 9. Declared and paid $ 500 of dividends to shareholders. 10. Paid income tax of $ 260 for the month.Explanation / Answer
Journal Entries
No
Account Titles and Explanation
Debit
Credit
1
Equipment
$ 8,300.00
Accounts Payable
$ 8,300.00
(equipment purchased on account)
2
Rent expense
$ 1,600.00
Cash
$ 1,600.00
(Rent expense paid for may)
3
Accounts Receivable
$ 3,400.00
Service revenue
$ 3,400.00
(Service revenue earned)
4
Utilities expense
$ 200.00
Cash
$ 200.00
(utilities expense paid)
5
Cash
$ 19,900.00
Notes payable
$ 19,900.00
(borrowed money from bank)
6
Accounts Payable
$ 8,300.00
Cash
$ 8,300.00
(paid for equipment purchased in earlier on account)
7
Prepaid insurance
$ 600.00
Cash
$ 600.00
(insurance policy purchased)
8
Cash
$ 2,700.00
Accounts Receivable
$ 2,700.00
(received against debit balance of receivable)
9
Dividends
$ 500.00
Cash
$ 500.00
(dividends declared and paid)
10
Income tax expense
$ 260.00
Cash
$ 260.00
(income tax expense paid)
Notes
Insurance is debited to prepaid insurance since insurance term is not yet expired.
It is assumed that loan from bank is against Notes payable.
Student is requested to make necessary adjustments regarding the title of accounts since list of accounts is not provided.
No
Account Titles and Explanation
Debit
Credit
1
Equipment
$ 8,300.00
Accounts Payable
$ 8,300.00
(equipment purchased on account)
2
Rent expense
$ 1,600.00
Cash
$ 1,600.00
(Rent expense paid for may)
3
Accounts Receivable
$ 3,400.00
Service revenue
$ 3,400.00
(Service revenue earned)
4
Utilities expense
$ 200.00
Cash
$ 200.00
(utilities expense paid)
5
Cash
$ 19,900.00
Notes payable
$ 19,900.00
(borrowed money from bank)
6
Accounts Payable
$ 8,300.00
Cash
$ 8,300.00
(paid for equipment purchased in earlier on account)
7
Prepaid insurance
$ 600.00
Cash
$ 600.00
(insurance policy purchased)
8
Cash
$ 2,700.00
Accounts Receivable
$ 2,700.00
(received against debit balance of receivable)
9
Dividends
$ 500.00
Cash
$ 500.00
(dividends declared and paid)
10
Income tax expense
$ 260.00
Cash
$ 260.00
(income tax expense paid)