Answered: Accounting Question

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

Related questions

Question

Expert Solution

Step 1

1) Journal Entries :

In the Books of Ute
Journal Entries
Date	Account	Debit($)	Credit($)
March

1	Cash A/c Dr	3000
	To Common Stock		3000
	( Being Cash received on Issue of Shares)

3	Equipment a/c Dr	2700
	To Notes Payable A/c		2700
	( Being Equipment purchased)

5	Rent Expense A/c Dr	600
	To Cash		600
	(Being Rent expenses paid)

7	No Entry is required ( No monetary transaction)

12	Supplies A/c Dr	130
	To Accounts Payable		130
	(Being Supplies purchased on Credit)

15	Cash A/c Dr	800
	To Service Revenue		800
	(Being alteration revenue received)

19	Cash A/c Dr	700
	To Deferred Revenue A/c		700
	(Being Advance received for alteration of Suits )

25	Deferred Revenue A/c Dr	700
	To Service Revenue		700
	(Being Suit delivered and revenue recognized)

30	Utilities Expense A/c Dr	95
	To Cash		95
	(Being Utilities Expense paid )

31	Dividend A/c Dr	150
	To Cash		150
	(Being Utilities Expense paid )