Chapter 2, Problem S2.5SE

Journalizing transactions

Arkansas Sales Consultants completed the following transactions during the latter part of January:

Jan. 22 Performed services for customers on account, $9,000.

30 Received cash on account from customers, $7,000.

31 Received a utility bill, $210, which will be paid during February.

31 Paid monthly salary to salesman, $2,400.

31 Received $2,475 for three months of consulting service to be performed starting in February.

31 The owner, David Henry, withdrew $900 from the business.

Journalize the transactions of Arkansas Sales Consultants. Include an explanation with each journal entry.