Issued common stock for cash 2,000 b. Paid cash for three month's rent: December 2019, January and February 2020 2,400 c. Purchased a used truck on credit (recorded as an account payable) 13,000 d. Purchased supplies on credit. These are expected to be used during the month (recorded as expense) 1,600 e. Paid for a one-year truck insurance policy, effective December 1 2,280 f. Billed a customer for work completed to date 6,000
Issued common stock for cash 2,000 b. Paid cash for three month's rent: December 2019, January and February 2020 2,400 c. Purchased a used truck on credit (recorded as an account payable) 13,000 d. Purchased supplies on credit. These are expected to be used during the month (recorded as expense) 1,600 e. Paid for a one-year truck insurance policy, effective December 1 2,280 f. Billed a customer for work completed to date 6,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please prepare Journals & T Accts for:
| 2019 | |||||||||||||
| December | Transactions | Amount | |||||||||||
| a. | Issued common stock for cash | 2,000 | |||||||||||
| b. | Paid cash for three month's rent: December 2019, January and February 2020 | 2,400 | |||||||||||
| c. | Purchased a used truck on credit (recorded as an account payable) | 13,000 | |||||||||||
| d. | Purchased supplies on credit. These are expected to be used during the month (recorded as expense) | 1,600 | |||||||||||
| e. | Paid for a one-year truck insurance policy, effective December 1 | 2,280 | |||||||||||
| f. | Billed a customer for work completed to date | 6,000 | |||||||||||
| g. | Collected cash for work completed to date | 4,000 | |||||||||||
| h. | Paid the following expenses in cash: | ||||||||||||
| Advertising | 700 | ||||||||||||
| Interest | 700 | ||||||||||||
| Telephone | 800 | ||||||||||||
| Truck operating | 600 | ||||||||||||
| Wages | 5,000 | ||||||||||||
| i. | Collected part of the amount billed in f above | 1,000 | |||||||||||
| j. | Billed customers for work completed to date | 7,000 | |||||||||||
| k. | Signed a contract for work to be performed in January 2020 | 5,000 | |||||||||||
| l. | Paid the following expenses in cash: | ||||||||||||
| Advertising | 600 | ||||||||||||
| Interest | 600 | ||||||||||||
| Truck operating | 900 | ||||||||||||
| Wages | 2,000 | ||||||||||||
| m. | Collected an advance on work to be done in January (the policy of the coproration is to record such advances as revenue at the the time they are received) | ||||||||||||
| 2,000 | |||||||||||||
| n. | Received a bill for electricity used during the month (recorded as utilities expense) | 800 | |||||||||||
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