Question

Terapin Company engages in the following external transactions for November. 1. Purchase equipment in exchange for cash of $22,400. 2. Provide services to customers and receive cash of $4,600. 3. Pay the current month's rent of $1,600. 4. Purchase office supplies on account for $800. 5. Pay employees' salaries of $1,100 for the current month. Required: Record the transactions.

Answer 1

Step-by-step explanation:

The journal entries are shown below:

1. Equipment A/c Dr $22,400

To Cash A/c $22,400

(Being equipment is purchased for cash)

2. Cash A/c Dr $4,600

To Service revenue A/c $4,600

(Being cash is received for service provided)

3. Rent expense A/c Dr $1,600

To Cash A/c $1,600

(Being rent is paid for cash)

4. Office supplies A/c Dr $800

To Accounts payable A/c $800

(Being office supplies is purchased on credit)

5. Salaries expense A/c Dr $1,100

To Cash A/c $1,100

(Being salary is paid for cash)