exercise 2 - 4 (algo) journal entries lo2 - 3\nthe following transactions occurred during the month of…

exercise 2 - 4 (algo) journal entries lo2 - 3\nthe following transactions occurred during the month of june.\n1. obtained a loan of $55,000 from the bank by signing a note.\n2. issued common stock in exchange for cash of $25,000.\n3. purchased equipment for $60,000 cash.\n4. purchased supplies of $6,500 on account.\n5. provided services of $3,500 to customers. all customers paid cash.\n6. paid employees $750 for work performed.\n7. paid for advertising in a local newspaper, costing $350.\n8. provided services of $4,500 to customers on account.\n9. paid a utility bill of $1,250 for the current month.\n10. paid dividends of $450 to shareholders.\nrequired:\nprepare journal entries to record each of the transactions listed above.\nnote: if no entry is required for a transaction or event, select \no journal entry required\ in the first account field.

exercise 2 - 4 (algo) journal entries lo2 - 3\nthe following transactions occurred during the month of june.\n1. obtained a loan of $55,000 from the bank by signing a note.\n2. issued common stock in exchange for cash of $25,000.\n3. purchased equipment for $60,000 cash.\n4. purchased supplies of $6,500 on account.\n5. provided services of $3,500 to customers. all customers paid cash.\n6. paid employees $750 for work performed.\n7. paid for advertising in a local newspaper, costing $350.\n8. provided services of $4,500 to customers on account.\n9. paid a utility bill of $1,250 for the current month.\n10. paid dividends of $450 to shareholders.\nrequired:\nprepare journal entries to record each of the transactions listed above.\nnote: if no entry is required for a transaction or event, select \no journal entry required\ in the first account field.

Answer

Explanation:

Step1: Analyze transaction 1

Debit Cash $55,000; Credit Notes Payable $55,000

Step2: Analyze transaction 2

Debit Cash $25,000; Credit Common Stock $25,000

Step3: Analyze transaction 3

Debit Equipment $60,000; Credit Cash $60,000

Step4: Analyze transaction 4

Debit Supplies $6,500; Credit Accounts Payable $6,500

Step5: Analyze transaction 5

Debit Cash $3,500; Credit Service Revenue $3,500

Step6: Analyze transaction 6

Debit Salaries Expense $750; Credit Cash $750

Step7: Analyze transaction 7

Debit Advertising Expense $350; Credit Cash $350

Step8: Analyze transaction 8

Debit Accounts Receivable $4,500; Credit Service Revenue $4,500

Step9: Analyze transaction 9

Debit Utilities Expense $1,250; Credit Cash $1,250

Step10: Analyze transaction 10

Debit Dividends $450; Credit Cash $450

Answer:

Transaction General Journal Debit Credit
1 Cash<br>Notes Payable $55,000<br> <br>$55,000
2 Cash<br>Common Stock $25,000<br> <br>$25,000
3 Equipment<br>Cash $60,000<br> <br>$60,000
4 Supplies<br>Accounts Payable $6,500<br> <br>$6,500
5 Cash<br>Service Revenue $3,500<br> <br>$3,500
6 Salaries Expense<br>Cash $750<br> <br>$750
7 Advertising Expense<br>Cash $350<br> <br>$350
8 Accounts Receivable<br>Service Revenue $4,500<br> <br>$4,500
9 Utilities Expense<br>Cash $1,250<br> <br>$1,250
10 Dividends<br>Cash $450<br> <br>$450