Question

Journal Entries Exercise Transactions

a. Feb 03 Owner invested $13,000 into the business
b. Feb 07 Paid rent of $1,500
c. Feb 10 Bought $9,500 of equipment with $6,700 cash and owes $2,800 (on account)
d. Feb 12 Ordered and received $870 for a month of supplies
e. Feb 16 Earned $5,800 in client fees to be collected (on account)
f. Feb 17 Paid salaries $3,450
g. Feb 23 Paid phone expense $210
h. Feb 25 Received $2,550 in cash from client in cash from the business.

Answer 1

Answer and Explanation:

The journal entries are shown below:

a. Cash dr $13,000

To owner equity $13,000

(Being invested amount is recorded)

b. rent expense $1,500

To cash $1,500

(being cash paid)

c. Equipment $9,500

To cash $6,700

To account payable $2,800

(being equipment purchase on cash and on account)

d. Supplies Dr $870

to account payable $870

(being supplied ordered)

e. account receivable Dr $58,00

to client fees $5,800

(being account receivable is recorded)

f. salaries expense $3,450

To cash $3,450

(being cash paid)

g. phone expense $210

To cash $210

(being cash paid)

h. Cash Dr $2,550

to account receivable $2,550

(being cash received)