Question

TRANSACTIONSGave a cash refund of $750 to a customer because of a lost package.Sent a check for $1,050 to the utility company to pay the monthly bill.Provided services for $7,800 on credit.Purchased new equipment for $4,600 and paid for it immediately by check.Issued a check for $3,500 to pay a creditor on account.Performed services for $15,250 in cash.Collected $6,250 from credit customers.The owner made an additional investment of $25,000 in cash.Purchased supplies for $3,250 on credit.Issued a check for $3,750 to pay the monthly rent.Analyze the above transactions and record a journal entry for each transaction

Answer 1

Journal entries

Service Revenue Debit $ 750

Cash Credit $ 750

To record refund to customer for lost package

Utility Expenses Debit $ 1,050

Cash Credit $ 1,050

To record payment of utility company bill in cash

Accounts Receivable Debit $ 7,800

Service Revenue Credit $ 7,800

To record receivables for services provided on credit

Equipment Debit $ 4,600

Cash Credit $ 4,600

To record purchase of equipment for cash

Accounts payable Debit $ 3.500

Cash Credit $ 3,500

To record payment to creditors

Cash Debit $ 15,250

Service revenue Credit $ 15,250

To record services provided on cash

Cash Debit $ 6,250

Accounts receivables Credit $ 6,250

To record collections from customers

Cash Debit $ 25,000

Capita account Owner Credit $ 25,000

To record capital contribution from owner

Supplies Debit $ 3,250

Accounts payable Credit $ 3,250

To record purchase of supplies on credit

Rent expense Debit $ 3,750

Cash Credit $ 3,750

To record payment of monthly rent

Step-by-step explanation: