Question

Analyzing and journalizing transactions Learning Objective 3 Journalize the transactions of Wilke Technology Solutions. Include an explanation with each journal entry. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Advertising; Land; Building; Accounts Payable; Unearned Revenue; Common Stock; Service Revenue; Rent Expense; and Salaries Expense.

The following transactions occurred for Wilke Technology Solutions:

May 1 The business received cash of $105,000 and issued common stock to Zoe Wilke.

2 Purchased office supplies on account, $550.

4 Paid $57,000 cash for building and land. The building had a fair market value of $45,000.

6 Performed services for customers and received cash, $3,600. 9 Paid $350 on accounts payable.

17 Performed services for customers on account, $3,500.

19 Paid rent expense for the month, $1,200.

20 Received $1,500 from customers for services to be performed next month.

21 Paid $900 for advertising in next month’s IT Technology magazine.

23 Received $3,100 cash on account from a customer.

31 Incurred and paid salaries, $1,700.

E2-19 Posting journal entries to four-column accounts(below)

Learning Objective 3

2. Cash Balance $52,050

Requirements

Open four-column accounts using the following account numbers: Cash, 110; Accounts Receivable, 120; Office Supplies, 130; Prepaid Advertising, 140; Land, 150; Building, 160; Accounts Payable, 210; Unearned Revenue, 220; Common Stock, 310; Service Revenue, 410; Rent Expense, 510; and Salaries Expense, 520.

Post the journal entries to the four-column accounts, and determine the balance in the account after each transaction. Assume that the journal entries were recorded on page 10 of the journal. Make sure to complete the Post. Ref. columns in the journal and ledger.

Answer 1

Answer:Journal Total Dr: $178,400, Total Cr: $178,400, Ledger Account Balance $52,450

Step-by-step explanation:

Journal entry

Dr: Cash $105,000

Cr common stock $105,000

Dr : office supplies $550

Cr: Account payable $550

Dr : Building $45,000

Dr: Land $12,000

Cr :Cash 57,000

Dr: Cash $3,600

Cr: Revenue Service $3600

Dr: Account payable $350

Cr:Cash $350

Dr: Cash $3,500

Cr:unearned Revenue $3,500

Dr: Rent Expense $1,200

Cr: Cash $1,200

Dr: Account Receivable $1,500

Cr: $1,500

Dr: Advertising prepaid $900

Cr: Amount in advance $900

Dr: Cash $3,100

Cr: Account Receivable $3,100

Dr: Cash $1,700

Cr:Salaries Expense $1,700

Total Dr: $178,400, Total Cr:$178,400

Ledger Account

May 1 Dr: Cash $105,000

Cr: common stock $105,000

May 2 Dr : office supplies $550

May 4 Dr: Building $45,000

May 4 Dr: Land $12,000

Balance $57,000

May 6 Cr: Revenue Service $3,600

Balance $53,400

May 9 Cr: Account payable $350

Balance $53,750

May 17 Cr : Unearned Revenue $3,500

Balance $50,250

May 19 Dr: Rent Expense $1,200

May 20 Dr : Account Receivable $1,509

May 21 Dr: Prepaid Advertising $900

Balance $53,850

May 23 Cr: Account Receivable $3,100

Balance $50,750

May 31 Dr : Salaries Expense $1,700

Balance $52,450