Question

On april 1, 20y8, maria adams established custom realty maria completed the following transactions during the month of april a. opened a business bank account with a deposit of $24,000 in exchange for common stock. b. purchased supplies on account , $2,400 . c. paid creditor on account , $1,520 . d. earned sales commissions , receiving cash, $24,500 . e. paid rent on office and equipment for the month , $4,800 . f. paid dividends , $ 8,000 . g. paid automobile expenses for month , $2,300, and miscellaneous expenses , $1,100. h. paid office salaries , $2,890 . i. determined that the cost of supplies on hand was $810; therefore , the cost of supplies used was $1,590. required:

Answer 1

To fulfill your request, the required information is as follows:

1. Prepare the journal entries for each transaction:

a. To record the deposit of $24,000 in exchange for common stock:
Date Account Debit Credit
----------------------------------------------------------
April 1 Cash $24,000
Common Stock $24,000

b. To record the purchase of supplies on account for $2,400:
Date Account Debit Credit
----------------------------------------------------------
April 1 Supplies $2,400
Accounts Payable $2,400

c. To record the payment to the creditor on account for $1,520:
Date Account Debit Credit
----------------------------------------------------------
April 1 Accounts Payable $1,520
Cash $1,520

d. To record the earned sales commissions of $24,500 received in cash:
Date Account Debit Credit
----------------------------------------------------------
April 1 Cash $24,500
Sales Commissions Earned $24,500

e. To record the payment of rent on office and equipment for the month of $4,800:
Date Account Debit Credit
----------------------------------------------------------
April 1 Rent Expense $4,800
Cash $4,800

f. To record the payment of dividends of $8,000:
Date Account Debit Credit
----------------------------------------------------------
April 1 Dividends $8,000
Cash $8,000

g. To record the payment of automobile expenses for the month of $2,300 and miscellaneous expenses of $1,100:
Date Account Debit Credit
----------------------------------------------------------
April 1 Automobile Expenses $2,300
Miscellaneous Expenses $1,100
Cash $3,400

h. To record the payment of office salaries of $2,890:
Date Account Debit Credit
----------------------------------------------------------
April 1 Office Salaries $2,890
Cash $2,890

2. Calculate the cost of supplies used:
Cost of supplies used = Cost of supplies on hand - Cost of supplies used
Cost of supplies used = $2,400 - $810
Cost of supplies used = $1,590

These are the required journal entries and the calculation for the cost of supplies used based on the given transactions.