Mar 1 5 9 10 19 22 31 31 31 Rockford deposited $74,000 cash in the business bank
ID: 2444925 • Letter: M
Question
Mar 1 5 9 10 19 22 31 31 31 Rockford deposited $74,000 cash in the business bank account. The business gave capital to Rockford. Paid monthly rent on medical equipment, $560. Paid $24,000 cash to purchase land for an office site. Purchased supplies on account, $1,300. Borrowed $19,000 from the bank for business use. Rockford signed a note payable to the bank in the name of the business. Paid $900 on account. Revenues earned during the month included $7,100 cash and $4,700 on account. Paid employees’ salaries $2,000, office rent $1,600, and utilities $320. Make a single compound entry. Rockford withdrew cash of $8,000. The business uses the following accounts: Cash; Accounts receivable; Supplies; Land; Accounts payable; Notes payable; Rockford, capital; Rockford, drawing; Service revenue; Salary expense; Rent expense; and Utilities expense.
Explanation / Answer
Journal Entries of the Business of Rockford
Date Account Debit($) Credit($) Mar-1 Cash 74,000 Rockford Capital Account 74,000 (Being Capital introduced in the business) Mar-5 Rent Expenses 560 Cash 560 (Paid Rent on Medical Equipment) Mar-9 Land 24,000 Cash 24,000 (Cash paid to purchse land) Mar-10 Supplies 1300 Accounts payable 1300 (Being Supplies purchaed on account) Mar-19 Cash 19000 Notes Payable 19000 (Being amount borrowed for Business by signing Notes Payable) Mar-22 Account Payable 900 Cash 900 (Being cash paid on account) Mar-31 Cash 7100 Account Receivable 4700 Service Revenue 11800 (Being Revenue earned during the Month) Mar-31 Salaries expense 2000 Rent expense 1600 Utilities expense 320 Cash 3920 (Being Cash paid for Office salaries, office rent and utitlities for the month) Mar-31 Rockford drawing 8000 To Cash 8000 (Being cash withdrawn by Rockford from business)