Prepare journal entries to record the Dec transaction: 1-Dec Began business by d
ID: 2404004 • Letter: P
Question
Prepare journal entries to record the Dec transaction:
1-Dec
Began business by depositing $7500 in a bank account in the name of the company in exchange for
750 shares of $10 per share common stock.
1-Dec
Paid the rent for the current month, $650 .
1-Dec
Paid the premium on a one-year insurance policy, $840 .
1-Dec
Purchased Equipment for $3600 cash.
5-Dec
Purchased office supplies from XYZ Company on account, $300 .
15-Dec
Provided services to customers for $6000 cash.
16-Dec
Provided service to customers ABC Inc. on account, $3400 .
21-Dec
Received $1800 cash from ABC Inc., customer on account.
23-Dec
Paid $170 to XYZ company for supplies purchased on account on December 5 .
28-Dec
Paid wages for the period December 1 through December 28, $5040 .
30-Dec
Declared and paid dividend to stockholders $200 .
1-Dec
Began business by depositing $7500 in a bank account in the name of the company in exchange for
750 shares of $10 per share common stock.
1-Dec
Paid the rent for the current month, $650 .
1-Dec
Paid the premium on a one-year insurance policy, $840 .
1-Dec
Purchased Equipment for $3600 cash.
5-Dec
Purchased office supplies from XYZ Company on account, $300 .
15-Dec
Provided services to customers for $6000 cash.
16-Dec
Provided service to customers ABC Inc. on account, $3400 .
21-Dec
Received $1800 cash from ABC Inc., customer on account.
23-Dec
Paid $170 to XYZ company for supplies purchased on account on December 5 .
28-Dec
Paid wages for the period December 1 through December 28, $5040 .
30-Dec
Declared and paid dividend to stockholders $200 .
Explanation / Answer
Bank account Dr.
To common stock a/c
7500
7500
Rent a/c Dr.
to Bank a/c
650
Insurance Premium a/c Dr.
To Bank a/c
840
840
Equipment a/c Dr.
To cash a/c
3600
office supplies a/c Dr.
To XYZ company a/c
300
300
Cash account Dr.
To Sales a/c
6000
6000
ABC Inc a/c Dr.
To sales a/c
3400
3400
Cash a/c Dr
To ABC Inc a/c
1800
1800
XYZ company a/c Dr.
To Bank a/c
170
170
Wages a/c Dr.
To Bank a/c
5040
5040
Dividend a/c Dr.
To bank a/c
200
200
DATE PARTICULARS Dr. Amount($) Cr. Amount($) 1-DecBank account Dr.
To common stock a/c
7500
7500
1-DecRent a/c Dr.
to Bank a/c
650650
1-DecInsurance Premium a/c Dr.
To Bank a/c
840
840
1-DecEquipment a/c Dr.
To cash a/c
3600
3600 5-Decoffice supplies a/c Dr.
To XYZ company a/c
300
300
15-DecCash account Dr.
To Sales a/c
6000
6000
16-DecABC Inc a/c Dr.
To sales a/c
3400
3400
21-DecCash a/c Dr
To ABC Inc a/c
1800
1800
23-DecXYZ company a/c Dr.
To Bank a/c
170
170
28-DecWages a/c Dr.
To Bank a/c
5040
5040
30-DecDividend a/c Dr.
To bank a/c
200
200