Question

Journalize the following transactions for Cullumber Company.

Sept. 1 Purchased supplies for $1,020 cash. 5 Paid $410 cash dividend to stockholders.
7 Received $5,500 down payment from customer for services to be provided in the future.
16 Received $770 cash from a previously billed customer for payment of services provided in the prior month.
22 Purchased equipment for $3,000 by paying $1,100 cash and issued a note payable for the balance.

Answer 1

Answer and Explanation:

The journal entries are shown below

On Sept 1

Supplies Dr $1,020

To Cash $1,020

(being supplies purchased in cash)

On Sept 5

Dividend Dr $410

To cash $410

(being cash dividend is paid)

On Sept 7

cash Dr 5,500

To Unearned service revenue $5,500

(being cash collection is recorded)

On Sept 16

Cash Dr $770

To Account receivable $770

(being cash collection is recorded)

On Sept 22

Equipment Dr $3,000

To cash $1,100

To Note payable $1,900

(being equipment purchased is recorded)