3. journal entries\njournalize the following transactions:\n1. purchased $375 of supplies on account.\n2…

3. journal entries\njournalize the following transactions:\n1. purchased $375 of supplies on account.\n2. paid for supplies purchased above.\n3. billed customers $3,750 for services performed.\n4. received payment in advance of $4,200 from a customer for services that have not yet been performed.\n5. purchased a truck for $21,000 by paying $7,000 cash and signing a three - year note payable for the balance.\n6. performed $560 of services for a customer who paid in advance.\n7. issued shares of common stock to investors for $770.

3. journal entries\njournalize the following transactions:\n1. purchased $375 of supplies on account.\n2. paid for supplies purchased above.\n3. billed customers $3,750 for services performed.\n4. received payment in advance of $4,200 from a customer for services that have not yet been performed.\n5. purchased a truck for $21,000 by paying $7,000 cash and signing a three - year note payable for the balance.\n6. performed $560 of services for a customer who paid in advance.\n7. issued shares of common stock to investors for $770.

Answer

Explanation:

Step1: Record supply purchase on account

Debit Supplies (asset) for $375 and credit Accounts Payable (liability) for $375.

Account Titles and Explanation Debit ($) Credit ($)
Supplies 375
Accounts Payable 375

Step2: Record payment for supplies

Debit Accounts Payable (liability) for $375 and credit Cash (asset) for $375.

Account Titles and Explanation Debit ($) Credit ($)
Accounts Payable 375
Cash 375

Step3: Record billing customers for services

Debit Accounts Receivable (asset) for $3,750 and credit Service Revenue (revenue) for $3,750.

Account Titles and Explanation Debit ($) Credit ($)
Accounts Receivable 3750
Service Revenue 3750

Step4: Record advance payment from customer

Debit Cash (asset) for $4,200 and credit Unearned Service Revenue (liability) for $4,200.

Account Titles and Explanation Debit ($) Credit ($)
Cash 4200
Unearned Service Revenue 4200

Step5: Record truck purchase

Debit Truck (asset) for $21,000, credit Cash (asset) for $7,000 and credit Notes Payable (liability) for $14,000 ($21000 - $7000).

Account Titles and Explanation Debit ($) Credit ($)
Truck 21000
Cash 7000
Notes Payable 14000

Step6: Record performance of services for advance - paying customer

Debit Unearned Service Revenue (liability) for $560 and credit Service Revenue (revenue) for $560.

Account Titles and Explanation Debit ($) Credit ($)
Unearned Service Revenue 560
Service Revenue 560

Step7: Record issuance of common stock

Debit Cash (asset) for $770 and credit Common Stock (equity) for $770.

Account Titles and Explanation Debit ($) Credit ($)
Cash 770
Common Stock 770

Answer:

Journal entries are shown above for each transaction.