Create general ledger entries for the following: 1. Paid off beginning Accounts
ID: 2415874 • Letter: C
Question
Create general ledger entries for the following:
1. Paid off beginning Accounts Payable balance ($4500)
2. Collected the entire Accounts Receivable balance that existed at the beginning of the year ($3200)
3. Paid the "Income Taxes Payable" balance that existed in the beginnig of the year ($1000)
4. Purchased $1600 of equipment on credit (under terms n/60)
5. Earned revenue of $8600 of which $7500 has been colected in cash with $1100 still due from customers
6. Paid cash wages of $3860 of which $900 was payment on the beginning year Wages Payable blanace ($900) with the remaining $2960 paid for work performmed furing the current month
7. Purchased supplies costing $400 for use in future months. $100 of these purchases remain unpaid for at the end of the month (i.e. $300 was paid in cash with $100 still on account)
8. Issued 1000 additional shares of stock and recieved $8800 cash
9. Near the end of the motnh received a $700 deposit from a customer for services to be performed next month
10. Declared and paid a cash dividend of $2500
Explanation / Answer
Journal Entry Date Particulars Dr. Amt Cr. Amt. 1 Accounts Payables Dr. 4500 To Cash 4500 (Paid the accounts payables) 2 Cash Dr. 3200 To Accounts Receivables 3200 (Paid the accounts receivables) 3 Income Tax payable Dr. 1000 To Cash 1000 (Paid the income tax payable) 4 Equipment Dr. 1600 To Accounts Payables 1600 (Purchase equipment on credit) 5 Cash Dr. 7500 Accounts Receivables Dr. 1100 To Income Earned 8600 Income earned and collected) 6 Wages Exp. Dr. 2960 Wages Payable Dr. 900 To Cash 3860 (Wages Paid) 7 Supplies Dr. 400 To Cash 300 To Accounts Payable . 100 (Supplies purchased during the month) 8 Cash Dr. 8800 To Common Stock 8800 (Issues 1000 additional shares) 9 Cash Dr 700 To Fees recd in advance 700 (Fess recd in advance) 10 Dividend Dr. 2500 To Cash 2500 (declare and paid the cash dividend)