ACC 100 Lecture Notes - Lecture 3: Office Supplies, Accounts Payable, Retained Earnings
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Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co. completed the following transactions during its first month of operations. |
May 1 | G. Gram invested $40,000 cash in the company in exchange for its common stock. |
1 | The company rented a furnished office and paid $2,200 cash for Mayâs rent. |
3 | The company purchased $1,890 of office equipment on credit. |
5 | The company paid $750 cash for this monthâs cleaning services. |
8 | The company provided consulting services for a client and immediately collected $5,400 cash. |
12 | The company provided $2,500 of consulting services for a client on credit. |
15 | The company paid $750 cash for an assistantâs salary for the first half of this month. |
20 | The company received $2,500 cash payment for the services provided on May 12. |
22 | The company provided $3,200 of consulting services on credit. |
25 | The company received $3,200 cash payment for the services provided on May 22. |
26 | The company paid $1,890 cash for the office equipment purchased on May 3. |
27 | The company purchased $80 of advertising in this monthâs (May) local paper on credit; cash payment is due June 1. |
28 | The company paid $750 cash for an assistantâs salary for the second half of this month. |
30 | The company paid $300 cash for this monthâs telephone bill. |
30 | The company paid $280 cash for this monthâs utilities. |
31 | The company paid $1,400 cash in dividends to the owner (sole shareholder). |
8.
value:
0.36 points
Required information
Required: | |
2. | Enter the amount of each transaction on individual items of the accounting equation. Do not determine new account balances after each transaction. (Enter the transactions in the given order. Enter reductions to account balances with a minus sign.) |
JOURNAL ENTRIES
Journalize the following business transactions in generaljournal form. You may omit explanations of the transactions.
a. On January 1st, shareholders invest $55,000 cash to start areal estate office, in exchange for common shares.
Date | Account | Debit | Credit |
b) On January 2nd, purchased office equipment for $6,000, paying$2,500 in cash and signing a 30-day, note payable for theremainder.
Date | Account | Debit | Credit |
c) On January 2nd paid $1,400 in cash for current month and nextmonthâs rent.
Date | Account | Debit | Credit |
d) On January 7th billed $5,400 in real estate commissions toclients for services provided.
Date | Account | Debit | Credit |
e) On January 31st paid $1,000cash dividends to shareholders.
Date | Account | Debit | Credit |
f) On January31st paid $2,500 cash for office salaries
Date | Account | Debit | Credit |
g) On February 1st received a $6,000 cheque from aclient, $5,400 in payment on account for commissions billed onJanuary 7th and the balance for services not yetperformed.
Date | Account | Debit | Credit |