Question
Baker Incorporated specializes in training and veterinary services for househol pets, such as dogs, birds, lizards, fish, and cats. Afhter the first 11 monts of operations in 2018, Baker has the following account Prepaid Rent Equipment 820 Accounts Payable Deterred Revenue 9.500 Common Stock Retaned Eamings 145000 Service Revenue Salanes Expense Advertising Expense Utites Expense 250 000 100 000 30 700 458 100 $458 100 The tolowirng transactions occur during December 2018 December 1-31 Throughout the month Baker provides services to customers for cash, $25,400. (Hint: Record the entire month's services in a single entry) December 4 Purchase pet supplies on account, $2,700 December Pay for iers to be distributed to local residenoes to advertise the oompany's services $3,100 December 9 Pay for supplies purchased on December 4 December 12 Issue adsitional shares of common stock for cash $6.000 December 16 Pay cash on accounts payable o,000 December 19 Purchase equipment with cash, $7,800 December 22 Pay stiities for December $4,400 December 24 Recelve cash from customers for services to be provided next January $2 500 December 27 One of Baker's trainers takes a part-time job at the zoo and eams a saiary of $1.300 The z0o and Baker are separate companies December 30 Pay employees salaries for the current month, $10.000 December 31 Pay dividends to stockholders $3 000 1, Record eah trasacton (I' no entry is required for a transactionevent. selectaNoprnal entry required, in the test accourt heid.)
Explanation / Answer
Journal Entries 1-Dec Cash Dr. 25,400 To Service Revenue 25,400 4-Dec Purchase Dr. 2,700 To Account Payables 2,700 8-Dec Advertisment expenses Dr. 3,100 To Cash 3,100 9-Dec Account Payables Dr. 2,700 To Cash 2,700 12-Dec Cash Dr. 6,000 To Share Capital 6,000 16-Dec Account Payable Dr. 6,600 To Cash 6,600 19-Dec Equipement Dr. 7,800 To Cash 7,800 22-Dec Utilities Dr. 4,400 To Cash 4,400 22-Dec Cash Dr. 2,500 To Deferred Revenue 2,500 27-Dec No Entry required 30-Dec Salary Dr. 10,000 To Cash 10,000 31-Dec Dividend Dr. 3,000 To Cash 3,000
Trail Balance as on Dec 31 Accounts Debit Credit Cash 9,600 Supplies 5,300 Prepaid Rent 4,800 Equipement 89,900 Buildings 200,000 Account Payable 2,900 Deferred Revenue 5,900 Common Stock 151,000 Retained Earnings 50,200 Dividends 12,000 Service Revenue 275,400 Salaries Expenses 110,000 Advertisment Expenses 18,700 Utilities Expenses 35,100 Unearnerd Income Total 485,400 485,400 -