Journalizing Transactions 1

• Issued Common Stock for $24,000

  
  

  Cash - $24,000 Common Stock $24,000
• Obtained a bank loan for $7,000 by issuing a note payable.

  Cash $7,000 Notes Payable $7,000
• Paid $11,000 cash to buy equipment

  Equipment $11,000 Cash $11,000
• Paid $1,200 cash for April office rent

  Rent Expense $1,200 Cash $1,200
• Paid $1,450 for supplies

  Supplies $1,450 Cash $1,450
• Purchased $600 of advertising in the Daily Herald, on account

  Advertising Expense $600 Accounts Payable $600
• Journalize the transactions: Performed services for $18,000:Cash of $2,000 was received from customers, and the balance of $16,000 was billed to customers on account

  Debit cash 2,000 Debit accounts receivable 16,000 Credit service revenue 18,000
• Paid $400 cash dividend to stockholders

  Debit dividends 400 Credit cash 400
• Paid the utility bill for the month, $2,000

  Debit utility expense 2,000 Credit cash 2,000
• Paid "Daily Herald" the amount due

  Debit accounts payable 600 Credit cash 600
• Paid $40 of interest on the bank loan obtained 

  Debit interest expense 40 Credit cash 40
• Paid employees' salaries, $6,400

  Debit salaries and wages expense 6,400Credit cash 6,400
• Received $12,000 cash from customers billed

  Debit cash 12,000 Credit accounts receivable 12,000
• Paid income tax, $1,500

  Debit income tax expense 1,500 Credit cash 1,500
• Paid Daily Herald the amount due in transaction

  Accounts payable $600 Cash $600