R&B Electrical began operations on 1/1/2017. Their annual reporting period ends 12/31. The trial balance on 1/1/2019 follows: Account title Debit Credit Cash 6,000   Accounts receivable 6,000   Allowance for uncollectable accounts   1,000 Supplies 13,000   Materials 7,000   Equipment 78,000   Accumulated Depreciation   8,000 Land     Accounts payable     Wages payable     Interest payable     Income taxes payable     Long-term notes payable     Common stock (8,000 shares, $0.50 par value   4,000 Additional paid-in capital   80,000 Retained earnings   17,000 Service revenue     Wages expense     Supplies expense     Bad debt expense     Interest expense     Depreciation expense     Income tax expense     Misc. expenses     Totals 110,000 110,000 Transactions during 2019: $15,000 cash was borrowed on a five-year 8% note payable, dated 3/1/2019. $13,000 cash was paid for land. Earned $215,000 in sales revenues for 2019. $52,000 on account and the remainder in cash. Issued 4,000 additional shares of common stock for cash at $1 per share on 1/1/2019. Incurred $114,000 in miscellaneous expenses for 2019, $20,000 on credit and the rest paid in cash. Collected $34,000 owned on account. Purchased materials with $15,000 cash. Purchased $27,000 supplies on account. Paid $26,000 accounts payable. Signed a $12,000 one-year service contract for work to begin on 2/1/2020. Declared and paid $25,000 in cash dividends. - Given these transactions, prepare journal entries for the 2019 transactions and post them to the ledger

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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R&B Electrical began operations on 1/1/2017. Their annual reporting period ends 12/31. The trial balance on 1/1/2019 follows:

Account title

Debit

Credit

Cash

6,000

 

Accounts receivable

6,000

 

Allowance for uncollectable accounts

 

1,000

Supplies

13,000

 

Materials

7,000

 

Equipment

78,000

 

Accumulated Depreciation

 

8,000

Land

 

 

Accounts payable

 

 

Wages payable

 

 

Interest payable

 

 

Income taxes payable

 

 

Long-term notes payable

 

 

Common stock (8,000 shares, $0.50 par value

 

4,000

Additional paid-in capital

 

80,000

Retained earnings

 

17,000

Service revenue

 

 

Wages expense

 

 

Supplies expense

 

 

Bad debt expense

 

 

Interest expense

 

 

Depreciation expense

 

 

Income tax expense

 

 

Misc. expenses

 

 

Totals

110,000

110,000

Transactions during 2019:

  1. $15,000 cash was borrowed on a five-year 8% note payable, dated 3/1/2019.
  2. $13,000 cash was paid for land.
  3. Earned $215,000 in sales revenues for 2019. $52,000 on account and the remainder in cash.
  4. Issued 4,000 additional shares of common stock for cash at $1 per share on 1/1/2019.
  5. Incurred $114,000 in miscellaneous expenses for 2019, $20,000 on credit and the rest paid in cash.
  6. Collected $34,000 owned on account.
  7. Purchased materials with $15,000 cash.
  8. Purchased $27,000 supplies on account.
  9. Paid $26,000 accounts payable.
  10. Signed a $12,000 one-year service contract for work to begin on 2/1/2020.
  11. Declared and paid $25,000 in cash dividends.

- Given these transactions, prepare journal entries for the 2019 transactions and post them to the ledger

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