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Record the following business transactions as journal entries: Transaction # Transaction date #1.1/1/2022 Purchases a building, borrowing from the bank by signing a note payable for $580,000 at 6% annual interest and pays an additional $20,000 down payment to the seller. Record the transaction in 3 accounts. Note the TOTAL amount paid for the building and record the asset for the total amount. The building is expected to have a salvage value of $408,000 at the end of its 40 years of useful life. # 21/18/2022 Schedules service to be performed at a future date for a customer. Recieves $4,000 in advance from the customer on this date. Record the asset and the liability. Remember, you are deferring the recording of revenue until it is actually earned. # 3 1/28/2022 Provides services worth $16,000 and was paid in cash. #41/31/2022 Company employees earn $5,000 in salaries in the last half of January to be paid in February. Record the expense and the liability (payable). # 5 1/31/2022 Performed $2,000 of the service that was pre- paid for on January 18.

Record the following business transactions as journal entries: Transaction # Transaction date #1.1/1/2022 Purchases a building, borrowing from the bank by signing a note payable for $580,000 at 6% annual interest and pays an additional $20,000 down payment to the seller. Record the transaction in 3 accounts. Note the TOTAL amount paid for the building and record the asset for the total amount. The building is expected to have a salvage value of $408,000 at the end of its 40 years of useful life. # 21/18/2022 Schedules service to be performed at a future date for a customer. Recieves $4,000 in advance from the customer on this date. Record the asset and the liability. Remember, you are deferring the recording of revenue until it is actually earned. # 3 1/28/2022 Provides services worth $16,000 and was paid in cash. #41/31/2022 Company employees earn $5,000 in salaries in the last half of January to be paid in February. Record the expense and the liability (payable). # 5 1/31/2022 Performed $2,000 of the service that was pre- paid for on January 18.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hi, I need help assembling the following journal entries. Thank you.
Record the following business transactions as journal entries: Transaction # Transaction date #1.1/1/2022 Purchases a building, borrowing from the bank by signing a note payable for $580,000 at 6% annual interest and pays an additional $20,000 down payment to the seller. Record the transaction in 3 accounts. Note the TOTAL amount paid for the building and record the asset for the total amount. The building is expected to have a salvage value of $408,000 at the end of its 40 years of useful life. # 21/18/2022 Schedules service to be performed at a future date for a customer. Recieves $4,000 in advance from the customer on this date. Record the asset and the liability. Remember, you are deferring the recording of revenue until it is actually earned. # 3 1/28/2022 Provides services worth $16,000 and was paid in cash. #4 1/31/2022 Company employees earn $5,000 in salaries in the last half of January to be paid in February. Record the expense and the liability (payable). # 5 1/31/2022 Performed $2,000 of the service that was pre- paid for on January 18.
Transcribed Image Text:Record the following business transactions as journal entries: Transaction # Transaction date #1.1/1/2022 Purchases a building, borrowing from the bank by signing a note payable for $580,000 at 6% annual interest and pays an additional $20,000 down payment to the seller. Record the transaction in 3 accounts. Note the TOTAL amount paid for the building and record the asset for the total amount. The building is expected to have a salvage value of $408,000 at the end of its 40 years of useful life. # 21/18/2022 Schedules service to be performed at a future date for a customer. Recieves $4,000 in advance from the customer on this date. Record the asset and the liability. Remember, you are deferring the recording of revenue until it is actually earned. # 3 1/28/2022 Provides services worth $16,000 and was paid in cash. #4 1/31/2022 Company employees earn $5,000 in salaries in the last half of January to be paid in February. Record the expense and the liability (payable). # 5 1/31/2022 Performed $2,000 of the service that was pre- paid for on January 18.
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