Following are the transactions for Valdez Services. a. The company pald $2.000 cash for payment on a 6-month-old account payable for office supplies. ejust c The company pald $39,000 cash for equlipment purchased. d. The company pald $800 cash for this month's utilites. e. The owner (B. Valdez) withdrew $4.500 cash from the company for personal use. 1. Prepare general journal entries for the above transactions of Valdez Services. View transaction at Journal entry worksheet 1 2 3 4 5 The company paid $2,.000 cash for payment on a 6-month-old account payable for office supplies. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry Vlew general journal

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Following are the transactions for Valdez Services.
a. The company pald $2,000 cash for payment on a 6-month-old account payable for office supplies.
b. The company pald $1,200 cash for the Just completed two-week salary of the receptionist.
c. The company pald $39,000 cash for equipment purchased.
d. The company pald $800 cash for this month's utilities.
e. The owner (B. Valdez) withdrew $4,500 cash from the company for personal use.
1. Prepare general journal entries for the above transactions of Valdez Services.
Vlew transaction llet
Journal entry worksheet
4 5
2
3
The company paid $2,000 cash for payment on a 6-month-old account payable
for office supplies.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
a.
Record entry
Clear entry
Vlew general Journal
2 Listed below are three reasons why a transaction would not result in an expense. Match each of the reasons to the transactlon It
properly describes.
Reason
Transaction
This transaction is a distribution of cash to the owner. Even though equity decreased, that decrease did not occur
in the process of providing goods or services to customers.
This transaction decreased cash in settlement of a previously existing liability (equity did not change). Supplies
expense is recorded when assets are used, not necessarily when cash is paid.
This transaction involves the purchase of an asset. The form of the company's assets changed, but total assets
did not (and neither did equity).
Transcribed Image Text:Following are the transactions for Valdez Services. a. The company pald $2,000 cash for payment on a 6-month-old account payable for office supplies. b. The company pald $1,200 cash for the Just completed two-week salary of the receptionist. c. The company pald $39,000 cash for equipment purchased. d. The company pald $800 cash for this month's utilities. e. The owner (B. Valdez) withdrew $4,500 cash from the company for personal use. 1. Prepare general journal entries for the above transactions of Valdez Services. Vlew transaction llet Journal entry worksheet 4 5 2 3 The company paid $2,000 cash for payment on a 6-month-old account payable for office supplies. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry Vlew general Journal 2 Listed below are three reasons why a transaction would not result in an expense. Match each of the reasons to the transactlon It properly describes. Reason Transaction This transaction is a distribution of cash to the owner. Even though equity decreased, that decrease did not occur in the process of providing goods or services to customers. This transaction decreased cash in settlement of a previously existing liability (equity did not change). Supplies expense is recorded when assets are used, not necessarily when cash is paid. This transaction involves the purchase of an asset. The form of the company's assets changed, but total assets did not (and neither did equity).
Following are transactions for Valdez Services, a company owned by Brina Valdez.
a. Brina Valdez Invested $20,000 cash In the company.
b. The company provided services to a client and Immediately recelved $900 cash.
c. The company recelved $10,000 cash from a client In payment for services to be provided next year.
d. The company recelved $3,500 cash from a client In partlal payment of accounts recelvable.
e. The company borrowed $5,000 cash from the bank by signing a note payable.
1. Prepare general journal entries for the above transactions of Valdez Services.
Vlew transaction let
Journal entry worksheet
1
2 3 4 5
Brina Valdez invested $20,000 cash in the company.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
a.
Record entry
Clear entry
Vlew general Journal
2 Listed below are four reasons why a transaction would not yleld a revenue. Match each of the reasons to the transaction It properly
describes.
Reason
Transaction
This transaction changed the form of an asset from a receivable to cash. Total assets were not increased
(revenue was recognized when the services were originally provided).
This transaction brought in cash (increased assets), and it also increased a liability by the same amount
(represented by the signing of a note to repay the amount).
This transaction brought in cash, but this is an owner investment.
This transaction brought in cash, but it created a liability to provide services to the client in the next year.
Transcribed Image Text:Following are transactions for Valdez Services, a company owned by Brina Valdez. a. Brina Valdez Invested $20,000 cash In the company. b. The company provided services to a client and Immediately recelved $900 cash. c. The company recelved $10,000 cash from a client In payment for services to be provided next year. d. The company recelved $3,500 cash from a client In partlal payment of accounts recelvable. e. The company borrowed $5,000 cash from the bank by signing a note payable. 1. Prepare general journal entries for the above transactions of Valdez Services. Vlew transaction let Journal entry worksheet 1 2 3 4 5 Brina Valdez invested $20,000 cash in the company. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry Vlew general Journal 2 Listed below are four reasons why a transaction would not yleld a revenue. Match each of the reasons to the transaction It properly describes. Reason Transaction This transaction changed the form of an asset from a receivable to cash. Total assets were not increased (revenue was recognized when the services were originally provided). This transaction brought in cash (increased assets), and it also increased a liability by the same amount (represented by the signing of a note to repay the amount). This transaction brought in cash, but this is an owner investment. This transaction brought in cash, but it created a liability to provide services to the client in the next year.
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