Record each of these transactions in Journal entries and preparethe Ledger for Cash &...

Free

70.2K

Verified Solution

Question

Accounting

Record each of these transactions in Journal entries and preparethe Ledger for Cash & Cash Equivalents, Accounts Receivable andAccounts Payable:
Jan. 1^st Frank's Pizza started thebusiness by depositing $50,000 received from the sale of capitalstock in the company bank account.
Jan. 22^ndPurchased a building for$36,000, paying $6,000 in cash and issuing a note payable for theremaining $30,000.
Jan. 25^thPurchased tools andequipment on account, $13,800.
Jan. 27^thSold some of the tools ata price equal to their cost, $1,800, collectible within 45days.
Feb. 2^ndReceived $600 in partialcollection of the account receivable from the sale of tools.
Feb. 7^thPaid $6,800 in partialpayment of an account payable.
Feb. 11^thReceived $2,200 of salesrevenue in cash.
Feb. 2oth Purchased radio advertising fromRAC105 to be aired in March. The cost was $470, payable within 30days.
Jan. 22^ndPurchased officeequipment for $15,000 cash.
Jan. 26^thPerformedrepair services and billed clients $2,000. The entire amount willnot be collected until February.

Answer & Explanation Solved by verified expert

4.0 Ratings (790 Votes)

Date	Account titles and explanation	Debit	Credit
1-Jan	Cash	$ 50,000.00				Cash
	Common Stock		$ 50,000.00	1-Jan	$ 50,000.00	$ 6,000.00	22-Jan
				2-Feb	$ 600.00	$ 6,800.00	7-Feb
22-Jan	Building	$ 36,000.00		11-Feb	$ 2,200.00	$ 15,000.00	22-Jan
	Cash		$ 6,000.00
	Notes Payable		$ 30,000.00	bal	$ 25,000.00

25-Jan	Tools and Equipment	$ 13,800.00				Accounts Payable
	Accounts Payable		$ 13,800.00	7-Feb	$ 6,800.00	$ 13,800.00	25-Jan
						$ 470.00	20-Feb
27-Jan	Accounts Receivables	$ 1,800.00
	Sales Revenue		$ 1,800.00			$ 7,470.00	bal.

2-Feb	Cash	$ 600.00
	Accounts receivables		$ 600.00			Accounts Receivables
				27-Jan	$ 1,800.00	$ 600.00	2-Feb
7-Feb	Accounts Payable	$ 6,800.00		26-Jan	$ 2,000.00
	Cash		$ 6,800.00	bal.	$ 3,200.00

11-Feb	Cash	$ 2,200.00
	Sales Revenue		$ 2,200.00

20-Feb	Advertisement Exp.	$ 470.00
	Accounts payable		$ 470.00

22-Jan	Equipment	$ 15,000.00
	Cash		$ 15,000.00

26-Jan	Accounts Receivables	$ 2,000.00
	Service Revenue		$ 2,000.00

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingRecord each of these transactions in Journal entries and preparethe Ledger for Cash & Cash...Record each of these transactions in Journal entries and preparethe Ledger for Cash & Cash Equivalents, Accounts Receivable andAccounts Payable:Jan. 1st Frank's Pizza started thebusiness by depositing $50,000 received from the sale of capitalstock in the company bank account.Jan. 22ndPurchased a building for$36,000, paying $6,000 in cash and issuing a note payable for theremaining $30,000.Jan. 25thPurchased tools andequipment on account, $13,800.Jan. 27thSold some of the tools ata price equal to their cost, $1,800, collectible within 45days.Feb. 2ndReceived $600 in partialcollection of the account receivable from the sale of tools.Feb. 7thPaid $6,800 in partialpayment of an account payable.Feb. 11thReceived $2,200 of salesrevenue in cash.Feb. 2oth Purchased radio advertising fromRAC105 to be aired in March. The cost was $470, payable within 30days.Jan. 22ndPurchased officeequipment for $15,000 cash.Jan. 26thPerformedrepair services and billed clients $2,000. The entire amount willnot be collected until February.