50.1K

Verified Solution

Link Copied!

Strawberry Inc. entered into the following transactions during July 2023:

A. Select the appropriate journal entries for Strawberry Inc. from the dropdown list provided.

July 1: Borrowed $704,000 from Merry Ave Bank by signing a note payable

[ Select ] ["DR Accounts Payable; CR Cash $704,000", "DR Cash $704,000; CR Accounts Payable $704,000", "DR Notes Payable $704,000; CR Cash $704,000", "DR Cash $704,000; CR Notes Payable $704,000"]

July 15: Performed services for customers on account, $96,500, and for cash (received), $35,000 [

Select ] ["DR Accounts Payable $96,500, DR Cash $35,000; CR Service Revenue $131,500", "DR Accounts Receivable $96,500, DR Cash $35,000; CR Service Revenue $131,500", "DR Service Revenue $131,500; CR Accounts Receivable $96,500, CR Cash $35,000", "DR Service Revenue $131,500; CR Accounts Payable $96,500, Cash $35,000"]

July 17: Strawberry Inc. paid $67,000 to its employees for their salaries

[ Select ] ["DR Salaries Expense $67,000; CR Cash $67,000", "DR Cash $67,000; CR Salaries Expenses $67,000"]

July 19: Collected $6,000 from customers for services performed on July 15

[ Select ] ["DR Accounts Payable $6,000; CR Cash $6,000", "DR Accounts Receivable $6,000; CR Cash $ $6,000", "DR Cash $6,000; CR Accounts Receivable $6,000", "DR Cash $6,000; CR Accounts Payable $6,000"]

July 20: Strawberry Inc. paid $3,700 for utilities used during July

[ Select ] ["DR Utilities Expense $3,700; CR Cash $3,700", "DR Cash $3,700; CR Utilities Expense $3,700"]

July 21: Purchased equipment for $250,000 by paying $140,000 cash and obtaining a loan for the balance

[ Select ] ["DR Cash $140,000, DR Notes Payable $110,000; CR Equipment $250,000", "DR Equipment $250,000, DR Cash $140,000; CR Notes Payable $110,000", "DR Equipment $250,000; CR Cash $140,000, CR Notes Payable $110,000", "DR Equipment $250,000, DR Notes Payable $110,000; CR Cash $140,000"]

B. What is the normal balance of a Revenue Account?

[ Select ] ["Debit Balance", "Credit Balance"]

Answer & Explanation Solved by verified expert

See Answer