Step 1: Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template xisx". Use the following accounts as appropriate Cash Accounts Receivable Supplies Prepaid Insurance Equipment Land Accumulated Depreciation Accounts Payable Deferred Revenue Salaries Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue 1-Dec Issue common stock in exchange for cash of $8.500 1-Dec Paid the premium in advance on a one-year insurance policy, $1,080. 1-Dec Purchased Equipment for $4,800 cash. 5-Dec Purchased office supplies from XYZ Company on account, $500. 15-Dec Provided services to customers for $6,400 cash 16-Dec Provided services to customer ABC Inc on account, $4,000. 17-Dec Received $1,300 cash in advance from a customer for services to be provided in January Paid $240 to XYZ company for the Dec 5 purchase on account. 22-Dec 23-Dec Received $2,000 cash from customer, ABC Inc., on account 25-Dec Paid the rent for the current month, $750, 28-Dec Paid salaries to employees for work performed from December 1 through December 28, $4,480 29-Dec Declared and paid dividends to stockholders $450. 30-Dec Purchased land by signing 3 year note payable for $10,000 Depreciation Expense Salaries Expense Supplies Expense Rent Expense Insurance Expense
Step 1: Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template xisx". Use the following accounts as appropriate Cash Accounts Receivable Supplies Prepaid Insurance Equipment Land Accumulated Depreciation Accounts Payable Deferred Revenue Salaries Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue 1-Dec Issue common stock in exchange for cash of $8.500 1-Dec Paid the premium in advance on a one-year insurance policy, $1,080. 1-Dec Purchased Equipment for $4,800 cash. 5-Dec Purchased office supplies from XYZ Company on account, $500. 15-Dec Provided services to customers for $6,400 cash 16-Dec Provided services to customer ABC Inc on account, $4,000. 17-Dec Received $1,300 cash in advance from a customer for services to be provided in January Paid $240 to XYZ company for the Dec 5 purchase on account. 22-Dec 23-Dec Received $2,000 cash from customer, ABC Inc., on account 25-Dec Paid the rent for the current month, $750, 28-Dec Paid salaries to employees for work performed from December 1 through December 28, $4,480 29-Dec Declared and paid dividends to stockholders $450. 30-Dec Purchased land by signing 3 year note payable for $10,000 Depreciation Expense Salaries Expense Supplies Expense Rent Expense Insurance Expense
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:Step 1:
Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel
Template xisx". Use the following accounts as appropriate:
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Land
Accumulated Depreciation
Accounts Payable
Deferred Revenue
Salaries Payable
Notes Payable
Common Stock
Retained Earnings
Dividends
Service Revenue
1-Dec
Issue common stock in exchange for cash of $8.500
1-Dec
Paid the premium in advance on a one-year insurance policy, $1,080.
1-Dec
Purchased Equipment for $4,800 cash.
5-Dec
Purchased office supplies from XYZ Company on account, $500.
15-Dec
Provided services to customers for $6,400 cash
16-Dec
Provided services to customer ABC Inc on account, $4,000.
17-Dec
Received $1,300 cash in advance from a customer for services to be provided in January
22-Dec
Paid $240 to XYZ company for the Dec 5 purchase on account.
23-Dec
Received $2,000 cash from customer, ABC Inc., on account
25-Dec
Paid the rent for the current month, $750,
28-Dec
Paid salaries to employees for work performed from December 1 through December 28, $4,480
29-Dec
Declared and paid dividends to stockholders $450.
30-Dec Purchased land by signing 3 year note payable for $10,000
Depreciation Expense
Salaries Expense
Supplies Expense
Rent Expense
Insurance Expense
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