Question

1. provide music lessons to students for $14,000 cash.
2. purchase prepaid insurance to protect musical equipment over the next year for $3,840 cash.
3. purchase musical equipment for $17,000 cash.
4. obtain a loan from a bank by signing a note for $24,000.

record the transactions. the company uses the following accounts: cash, prepaid insurance, equipment, notes payable, and service revenue.
note: if no entry is required for a transaction or event, select
o journal entry required\ in the first account field.

journal entry worksheet

provide music lessons to students for $14,000 cash.

note: enter debits before credits.

transaction general journal debit credit
1 no journal entry required 14,000
cash 14,000

Explanation:

Step1: Analyze transaction 1

Received cash for service. Debit cash, credit service revenue.

Transaction	General Journal	Debit	Credit
	Service Revenue		14000

Step2: Analyze transaction 2

Paid cash for prepaid insurance. Debit prepaid insurance, credit cash.

Transaction	General Journal	Debit	Credit
	Cash		3840

Step3: Analyze transaction 3

Bought equipment with cash. Debit equipment, credit cash.

Transaction	General Journal	Debit	Credit
	Cash		17000

Step4: Analyze transaction 4

Obtained loan by signing note. Debit cash, credit notes payable.

Transaction	General Journal	Debit	Credit
	Notes Payable		24000

Answer:

Transaction	General Journal	Debit	Credit
	Service Revenue		14000
2	Prepaid Insurance	3840
	Cash		3840
3	Equipment	17000
	Cash		17000
4	Cash	24000
	Notes Payable		24000