1. provide music lessons to students for $14,000 cash.\n2. purchase prepaid insurance to protect musical…

1. provide music lessons to students for $14,000 cash.\n2. purchase prepaid insurance to protect musical equipment over the next year for $3,840 cash.\n3. purchase musical equipment for $17,000 cash.\n4. obtain a loan from a bank by signing a note for $24,000.\n\nrecord the transactions. the company uses the following accounts: cash, prepaid insurance, equipment, notes payable, and service revenue.\nnote: if no entry is required for a transaction or event, select \no journal entry required\ in the first account field.\n\njournal entry worksheet\n\nprovide music lessons to students for $14,000 cash.\n\nnote: enter debits before credits.\n\ntransaction general journal debit credit\n1 no journal entry required 14,000\ncash 14,000

1. provide music lessons to students for $14,000 cash.\n2. purchase prepaid insurance to protect musical equipment over the next year for $3,840 cash.\n3. purchase musical equipment for $17,000 cash.\n4. obtain a loan from a bank by signing a note for $24,000.\n\nrecord the transactions. the company uses the following accounts: cash, prepaid insurance, equipment, notes payable, and service revenue.\nnote: if no entry is required for a transaction or event, select \no journal entry required\ in the first account field.\n\njournal entry worksheet\n\nprovide music lessons to students for $14,000 cash.\n\nnote: enter debits before credits.\n\ntransaction general journal debit credit\n1 no journal entry required 14,000\ncash 14,000

Answer

Explanation:

Step1: Analyze transaction 1

Received cash for service. Debit cash, credit service revenue.

Transaction General Journal Debit Credit
1 Cash 14000
Service Revenue 14000

Step2: Analyze transaction 2

Paid cash for prepaid insurance. Debit prepaid insurance, credit cash.

Transaction General Journal Debit Credit
2 Prepaid Insurance 3840
Cash 3840

Step3: Analyze transaction 3

Bought equipment with cash. Debit equipment, credit cash.

Transaction General Journal Debit Credit
3 Equipment 17000
Cash 17000

Step4: Analyze transaction 4

Obtained loan by signing note. Debit cash, credit notes payable.

Transaction General Journal Debit Credit
4 Cash 24000
Notes Payable 24000

Answer:

Transaction General Journal Debit Credit
1 Cash 14000
Service Revenue 14000
2 Prepaid Insurance 3840
Cash 3840
3 Equipment 17000
Cash 17000
4 Cash 24000
Notes Payable 24000