Question

The May transactions of Bramble Corp. were as follows:

May 4 Paid $610 due for supplies previously purchased on account.
7 Performed advisory services on account for $6,840.
8 Purchased supplies for $870 on account.
9 Purchased equipment for $1,930 in cash.
17 Paid employees $700 in cash.
22 Received bill for equipment repairs of $800.
29 Paid $1,280 for 12 months of insurance policy. Coverage begins June 1.

Required:
Journalize the transactions.

Answer 1

Answer and Explanation:

The journal entries are given below:

On May 4

Account payable $610

To cash $610

(To record the cash paid)

On May 7

Account receivable $6,840

To service revenue $6,840

(To record the service on account)

On May 8

Supplies $870

To Account payable $870

(To record supplies purchased on account)

On May 9

Equipment $1,930

To cash $1,930

(To record the equipment purchase)

On May 17

Salary expense $700

To cash $700

(To record the salaries expense)

On May 22

Repair expense $800

To Account payable $800

(To record the received bill for repairing of an equipment)

On May 29

Prepaid rent $1,280

To cash $1,280

(To record the cash paid)