Question

Innovative Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Miscellaneous Expense. Journalize the following selected transactions for October 20Y2 in a two-column journal. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank. Oct. 1. Paid rent for the month, $4,400.

3 Paid advertising expense, $1,350.
5 Paid cash for supplies, $1,800.
6 Purchased office equipment on account, $11,500.
10 Received cash from customers on account, $8,600.
15 Paid creditor on account, $3,180.
27 Paid cash for miscellaneous expenses, $700.
30 Paid telephone bill for the month, $550.
31 Fees earned and billed to customers for the month, $37,200.
31 Paid electricity bill for the month, $830.
31 Paid dividends, $2,000.
Journalize the preceding selected transactions for March 2018 in a two-column journal. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Business transactions at Innovative Consulting Co. are journaled by debiting and crediting corresponding accounts in a two-column journal, following the double-entry bookkeeping principles for each occurrence in October 20Y2.

Step-by-step explanation:

Journalizing Transactions

To journalize the selected transactions for Innovative Consulting Co. for October 20Y2, one must understand the double-entry bookkeeping system, where each transaction affects two accounts. Here is how the transactions would be recorded:

1. Oct. 1: Rent expense - Dr. $4,400; Cash - Cr. $4,400
2. Oct. 3: Advertising expense - Dr. $1,350; Cash - Cr. $1,350
3. Oct. 5: Supplies - Dr. $1,800; Cash - Cr. $1,800
4. Oct. 6: Office equipment - Dr. $11,500; Accounts payable - Cr. $11,500
5. Oct. 10: Cash - Dr. $8,600; Accounts receivable - Cr. $8,600
6. Oct. 15: Accounts payable - Dr. $3,180; Cash - Cr. $3,180
7. Oct. 27: Miscellaneous expense - Dr. $700; Cash - Cr. $700
8. Oct. 30: Utilities expense (telephone) - Dr. $550; Cash - Cr. $550
9. Oct. 31: Accounts receivable - Dr. $37,200; Fees earned - Cr. $37,200
10. Oct. 31: Utilities expense (electricity) - Dr. $830; Cash - Cr. $830
11. Oct. 31: Dividends - Dr. $2,000; Cash - Cr. $2,000

Note that the transactions are recorded according to their respective dates in October (20Y2), debiting the account receiving benefit and crediting the account providing benefit.

Answer 2

Step-by-step explanation:

The journal entries are shown below:

On Oct 1

Rent expense A/c Dr $ 4,400

To Cash A/c $4,400

(Being payment of rent is made in cash)

On Oct 3

Advertising expense A/c Dr $1,350

To Cash A/c $1,350

(Being payment of adverting expense is made in cash)

On Oct 5

Supplies A/c Dr $ 1,800

To Cash A/c $1,800

(Being payment of supplies is made in cash)

On Oct 6

Office equipment A/c Dr $11,500

To Accounts payable $11,500

(Being purchase of office equipment on account is recorded)

On Oct 6

Cash A/c Dr $8,600

To Accounts receivable $8,600

(Being cash is received from customer is recorded)

On Oct 15

Accounts payable A/c Dr $3,180

To Cash A/c $3,180

(Being payment is made in cash is recorded)

On Oct 27

Miscellaneous expense A/c Dr $700

To Cash A/c $700

(Being expenses is paid in cash is recorded)

On Oct 30

Utilities expenses $550

To Cash A/c $550

(Being telephone expenses is paid in cash is recorded)

On Oct 31

Accounts receivable A/c Dr $37,200

To Fees earned $37,200

(Being feed earned and billed customer is recorded)

On Oct 31

Utilities expenses $830

To Cash A/c $830

(Being electricity expenses is paid in cash is recorded)

On Oct 31

Dividend A/c Dr $2,000

To Cash A/c $2,000

(Being dividend is paid in cash is recorded)