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Following are the January transactions:

a) Received a $795 deposit from a customer who wanted her piano rebuilt in February.
b) Rented a part of the building to a bicycle repair shop: $545 rent received for January.
c) Delivered five rebuilt pianos to customers who paid $14,425 in cash.
d) Delivered two rebuilt pianos to customers for $7,600 charged on account.
e) Received $6,400 from customers as payment on their accounts.
f) Received an electric and gas utility bill for $750 for January services to be paid in February.
g) Ordered $1,140 in supplies.
h) Paid $3,400 on account in January.
i) Paid $16,900 in wages to employees in January for work done this month.
j) Received and paid cash for the supplies in (g).
Prepare journal entries for the above January transactions.

User MaMazav
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1 Answer

11 votes

Answer:

a) Received a $795 deposit from a customer who wanted her piano rebuilt in February.

Account Debit Credit

Cash $795

Unearned Revenue $795

b) Rented a part of the building to a bicycle repair shop: $545 rent received for January.

Account Debit Credit

Cash $545

Rent Revenue $545

c) Delivered five rebuilt pianos to customers who paid $14,425 in cash.

Account Debit Credit

Cash $14,425

Service Revenue $14,425

d) Delivered two rebuilt pianos to customers for $7,600 charged on account.

Account Debit Credit

Accounts Receivable $7,600

Service Revenue $7,600

e) Received $6,400 from customers as payment on their accounts.

Account Debit Credit

Cash $6,400

Accounts Receivable $6,400

f) Received an electric and gas utility bill for $750 for January services to be paid in February.

Account Debit Credit

Utilities Expense $750

Utilities Payable $750

g) Ordered $1,140 in supplies.

Account Debit Credit

Supplies Expense $1,140

Supplies Payable $1,140

h) Paid $3,400 on account in January.

Account Debit Credit

Cash $3,400

Accounts Payable $3,400

i) Paid $16,900 in wages to employees in January for work done this month.

Account Debit Credit

Cash $16,900

Wage Expense $16,900

j) Received and paid cash for the supplies in (g).

Account Debit Credit

Cash $1,140

Supplies Payable $1,140

User Ron Garrity
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