I need some help with general journal entries. 1. On July 1, receive 69,100 cash
ID: 2422817 • Letter: I
Question
I need some help with general journal entries.
1. On July 1, receive 69,100 cash from new investors and issue 69,100 common stock to them.
Debit cash for 69100, credit common stock?
2. On July 1, Purchase 93,000 of new mowing equipment, paying cash to mower dealer.
Debit Equpment for 93,000 Credit cash for 93,000?
3. July 1 Pay 500 cash for july truck rental.
Debit truck rental expense, Credit cash?
4. July 3, invoice a customer 1870 for completed mowing job, customer will pay in 10 days.
Debit Accounts Receivable 1870, Credit Unearned revenue for 1870? Not sure if this one is right.
*****5. July 5, The board of directors declares a cash dividend, the total amount of the dividend is 27000, the date of record is set as July 15, the Date of payment is set as July 31.
I'm not sure how to enter this one. Debit Dividends payable Credit Accounts receivable????*****
6. July 7, pay the employees 12,000 for work performed during the first week of july.
Debit Wages expense 12,000, Credit cash 12,000?
7. July 10, Complete a mowing job for a new customer. Customer pays 950 cash for the job.
Debit cash 950, Credit service revenue 950?
8. July 12 collect 3,500 cash from a golf course for a special rush mowing job completed on May 31.
Debit 3,500 cash, but what do I credit? Can I get an explanation on this one too please?
9. July 14, pay employees 7200 for work performed during the second week of july.
Debit Wages Expense 7200, credit cash 7200.
***What's the difference between wages payable and wages expense? When do I know to use the expense vs liability account? Is wages payable when they are owed money in the future?
10. July 15, purchase $750 of supplies from the mower dealer. The supplies are consumed immediately. The mower dealer will be payed in two weeks.
Debit Supplies expense $750, Credit accounts payable 750? Is there anything else to this?
****11. July 15, collect 1870 on account. The cash that is received is from the new customer For the job completed on July 3.
If looking back at #4, would I debit Cash for 1870, credit Accounts Receivable for 1870, then what else??*****
If anyone could help it would be greatly appreciated. I'm really struggling in this class and am trying to understand things, but not having much luck.
Explanation / Answer
4. Debit Accounts receivable $ 1,870 Credit Service revenue $ 1,870.
5. July 5 : Debit Retained earnings $ 27,000 Credit Dividends payable $27,000
July 31: Debit Dividends payable $27,000 Credit Cash $27,000
8. Debit Cash $ 3,500 Credit Accounts receivable $ 3,500
9. Wages payable is a liability. Wages expense is an expense incurred for the current accounting period. When the wages expense remains unpaid at the end of the current accounting period, we recognize a liability ( wages payable) to pay for the expense in future.
10. Your entry is absolutely correct.
But remember, if the supplies were not consumed immediately, Debit Supplies, and when they are consumed, pass an adjusting entry Debit Supplies expense, Credit Supplies
11. Nothing else. All correct.