Question

Sun Devil Hair Design has the following transactions during the month of February.

February 2 February 7 February 14 February 15 February 25 February 28 Pay $700 for radio advertising for February. Purchase beauty supplies of $1,300 on account. Provide beauty services of $2,900 to customers and receive cash. Pay employee salaries for the current month of $900.Provide beauty services of $1,000 to customers on account. Pay utility bill for the current month of $300.
Record each transaction. Sun Devil uses the following accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Service Revenue, Advertising Expense, Salaries Expense, and Utilities Expense.

Answer 1

The journal entry for each transaction is given below.

Pay $700 for radio advertising for February.

Debit Advertising Expense $ 700

Credit Cash $ 700

Purchase beauty supplies of $1,300 on account.

Debit Supplies $ 1,300

Credit Accounts Payable $ 1,300

Provide beauty services of $2,900 to customers and receive cash.

Debit Service Revenue $ 2,900

Credit Cash $ 2,900

Pay employee salaries for the current month of $900.

Debit Salaries Expense $ 900

Credit Cash $ 900

Provide beauty services of $1,000 to customers on account.

Debit Accounts Receivable $ 1,000

Credit Service Revenue $ 1,000

Pay utility bill for the current month of $300.

Debit Service Revenue $ 300

Credit Cash $ 300