Question

1. prepare a journal entry for each of the transactions listed above. if an amount box does not require an entry, leave it blank. january 15 cash 14,000 common stock 14,000 january 24 supplies 720 accounts payable 720 february 20 accounts payable 720 cash 720 april 25 accounts receivable 40,700 service revenue 40,700 may 12 cash 12,500 accounts receivable 12,500 june 5 accounts receivable 9,500 service revenue 9,500 june 24 wages expense 9,400 cash 9,400

Explanation:

Step1: January 15 transaction

Received cash in exchange for common stock. Debit cash (asset increase) and credit common stock (equity increase).

Account Title	Debit	Credit
Common Stock		14,000

Step2: January 24 transaction

Purchased supplies on account. Debit supplies (asset increase) and credit accounts payable (liability increase).

Account Title	Debit	Credit
Accounts Payable		720

Step3: February 20 transaction

Paid off accounts payable. Debit accounts payable (liability decrease) and credit cash (asset decrease).

Account Title	Debit	Credit
Cash		720

Step4: April 25 transaction

Performed services on account. Debit accounts receivable (asset increase) and credit service revenue (revenue increase).

Account Title	Debit	Credit
Service Revenue		40,700

Step5: May 12 transaction

Received cash from accounts receivable. Debit cash (asset increase) and credit accounts receivable (asset decrease).

Account Title	Debit	Credit
Accounts Receivable		12,500

Step6: June 5 transaction

Performed services on account. Debit accounts receivable (asset increase) and credit service revenue (revenue increase).

Account Title	Debit	Credit
Service Revenue		9,500

Step7: June 24 transaction

Paid wages. Debit wages expense (expense increase) and credit cash (asset decrease).

Account Title	Debit	Credit
Cash		9,400

Answer:

Date	Account Title	Debit	Credit
January 15	Common Stock		14,000
January 24	Supplies	720
January 24	Accounts Payable		720
February 20	Accounts Payable	720
February 20	Cash		720
April 25	Accounts Receivable	40,700
April 25	Service Revenue		40,700
May 12	Cash	12,500
May 12	Accounts Receivable		12,500
June 5	Accounts Receivable	9,500
June 5	Service Revenue		9,500
June 24	Wages Expense	9,400
June 24	Cash		9,400