Journal entries assignment 1.docx

James Lindsay B00529452 Assignment 1 Professor Swahiki Entries for Question 2 Date Accounts DR CR Jan. 1 Cash $500,00 0 Contributed capital $500,000 Owners Invest $500,000 Date Accounts DR CR Feb. 1 Prepaid rent $60,00 0 Cash $60,000 Paid 60,000 cash for 6 months prepaid rent Date Accounts DR CR Feb. 1 Equipment $180,00 0 Cash $80,000 Note Payable $100,000 180,000 in equipment purchased, $80,000 in cash and 100,000 from note payable Date Accounts DR CR Mar. 1 Inventory $135,00 0 Accounts payable $135,000 Purchased Inventory for $135,000 on account Date Accounts DR CR Mar.30 Accounts payable $27,00 0 Cash $27,000 Paid cash expenses: 20,000(salaries)+7,000(Operating expenses) Date Accounts DR CR Mar. 30 Accounts Payable $40,00 0 Accounts Receivable $40,000 Paid 40,000 of owed inventory Date Accounts DR CR Apr. 5 Supplies $8,000 Cash $8,000 Purchased supplies, paid cash Date Accounts DR CR Apr. 15 A/R $12,00 0 Retained Earnings $12,000 Received 12,000 from billed customers Date Accounts DR CR Apr. 30 Cash $10,00 0 Service Revenue $10,000 Received $10,000 in prepaid service revenue D