Question

Innovative Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Miscellaneous Expense. Journalize the following selected transactions for October 20Y2 in a two-column journal. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank. Oct. 1. Paid rent for the month, $4,300. 3. Paid advertising expense, $2,750. 5. Paid cash for supplies, $1,180. 6. Purchased office equipment on account, $18,100. 12. Received cash from customers on account, $5,900. 20. Paid creditor on account, $1,730. 27. Paid cash for miscellaneous expenses, $750. 30. Paid telephone bill for the month, $280. 31. Fees earned and billed to customers for the month, $39,300. 31. Paid electricity bill for the month, $470. 31. Paid dividends, $3,000.

Answer 1

Date Accounts title Debit$ Credit$

1-Oct Rent expense Account 4300

Cash account 4300

3-Oct Advertisement expense 2760

Cash account 2760

5-Oct Supplies Account 1180

Cash account 1180

6-Oct Office equipment Account 18100

Accounts payable 18100

10-Oct Cash account 5900

Accounts receivable 5900

15-Oct Accounts payable 1730

Cash account 1730

27-Oct Misc expense Account 750

Cash account 750

30-Oct Utility expense Account 280

Cash account 280

31-Oct Accounts receivable Account 39300

Service revenue 39300

31-Oct Utility expense Account 470

Cash account 470

31-Oct Jason payne, Drawings 3000

Cash account 3000