Question

The May transactions of Hanschu Corporation were as follows.

May 4 Paid $600 due for supplies previously purchased on account.
7 Performed advisory services on account for $6,500.
8 Purchased supplies for $800 on account.
9 Purchased equipment for $1,000 in cash.
17 Paid employees $500 in cash.
22 Received bill for equipment repairs of $800.
29 Paid $1,100 for 12 months of insurance policy. Coverage begins June 1.

Required:
Journalize the transactions.

Answer 1

Answer and Explanation:

The journal entries are as follows:

On May 4

Account payable $600

To cash $600

(Being cash paid is recorded)

On May 7

Account receivable $6,500

To service revenue $6,500

(being service on account is recorded)

On May 8

Supplies $800

To Account payable $800

(being supplies purchased on account)

On May 9

Equipment $1,000

To cash $1,000

(being cash paid)

On May 17

Salary expense $500

To cash $500

(being cash paid)

On May 22

Repair expense $800

To Account payable $800

(Being received bill for repairing of an equipment is recorded)

On May 27

Prepaid rent $1,100

To cash $1,100

(Being cash paid is recorded)