70.2K

Verified Solution

Link Copied!

Prepare the following journal entries in proper journal entry form.

1. Purchased a 1-year insurance policy, paid $2,640.

2. Billed a customer for a $2,100 job.

3. Received $4,800 to start an eight-month job, beginning next month.

4. Bought a computer on credit for $3,600.

5. Contributed cash of $3,400 to a business checking account.

6. Received a gas bill, $300.

7. Paid $400 for van repairs.

8. Purchased supplies for $400 in cash.

9. Transferred $3,600 to his personal checking account.

10. Received $1,150 for a job he just completed.

11. The first month of the job in number 3 above has passed.

12. Hired an assistant, agreed to pay them $800 per week.

13. Purchased a van for $22,000 cash and a computer for $5,000 on account.

14. Received $4,000 from a customer for a job previously completed.

15. Paid $3,500,000 for a building worth $8,000,000, signed a note payable for the remainder.

16. Paid $4,500 for 3 months rent.

17. Invested $2,000 of personal funds in the companys cash account in exchange for equity.

18. Paid first of 12 installments regarding transaction in number 4, above.

19. Paid his assistant for a months work.

20. Earned additional revenues amounting to $800: $600 in cash and $200 on account.

21. One month has passed since transaction number 16 above.

22. Depreciation on the building for the month was $120,000, credited accum. deprec.

23. Received $1,400 in payment for services previously rendered.

24. One month has passed since the insurance policy in number 1 above was purchased.

25. Customer paid $7,000 on a $9,000 job just completed.

Answer & Explanation Solved by verified expert

See Answer