Question

The May transactions of Hanschu Corporation were as follows.May 4 Paid $700 due for supplies previously purchased on account.May 7 Performed advisory services on account for $6,800.May 8 Purchased supplies for $850 on account.May 9 Purchased equipment for $1,000 in cash.May 17 Paid employees $530 in cash.May 22 Received bill for equipment repairs of $900.May 29 Paid $1,200 for 12 months of insurance policy. Coverage begins June 1.Journalize the transactions.

Answer 1

The Journal entries are as follows:

(i) On May 4,

Accounts payable A/c Dr. $700

To cash $700

(To record the supplies)

(ii) On May 7,

Accounts receivable A/c Dr. $6,800

To service revenue $6,800

(To record the service revenue)

(iii) On May 8,

Supplies A/c Dr. $850

To accounts payable $850

(To record the purchase of supplies on account)

(iv) On May 9,

Equipment A/c Dr. $1,000

To cash $1,000

(To record the equipment purchased)

(v) On May 17,

Salary expense A/c Dr. $530

To cash $530

(To record the salary expense)

(vi) On May 22,

Repair expense A/c Dr. $900

To accounts payable $900

(To record the repair expense)

(vii) On May 29,

Prepaid Insurance A/c Dr. $1,200

To cash $1,200

(To record the prepaid insurance)