Question

A. Performed $8,200 of services on account.

b. Collected $5,600 cash on accounts receivable.
c. Paid $1,450 cash in advance for an insurance policy.
d. Paid $400 on accounts payable.
e. Recorded the adjusting entry to recognize $300 of insurance expense.
f. Received $1,600 cash for services to be performed at a later date.
g. Purchased land for $9,000 cash. Purchased supplies for $350 cash.

Required:
Record each of the above transactions.

Answer 1

Answer and Explanation:

The journal entries are as follows:

a.

Accounts receivable 8200

To Service revenue 8200

(being services performed on account is recorded)

b. Cash 5600

To Accounts receivable 5600

(Being collections on account is recorded)

c. Prepaid insurance 1450

To Cash 1450

(being cash paid in advance for insurance is recorded)

d. Accounts payable 400

to Cash 400

(Being record payment on account is recorded)

e. Insurance expense 300

To Prepaid insurance 300

(Being insurance expense is recorded)

f. Cash 1600

to Unearned revenue 1600

(Being cash received for services to be performed is recorded)

g. Land 9000

To Cash 9000

(Being land purchased for cash is recorded)

h. Supplies 350

To Cash 350

(being supplies purchased for cash is recorded)