Question

During January 2018, the following transactions occur:

January 1. Purchase equipment for $20,300. The company estimates a residual value of $2,300 and a five-year service life.
January 4. Pay cash on accounts payable, $10,300.
January 8. Purchase additional inventory on account, $90,900.
January 15. Receive cash on accounts receivable, $22,800
January 19. Pay cash for salaries, $30,600.
January 28. Pay cash for January utilities, $17,300.
January 30. Firework sales for January total $228,000. All of these sales are on account. The cost of the units sold is $119,000.

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1. Record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Please see explanation

Step-by-step explanation:

January 1 :

Debit : Equipment account : $20,300

Credit : Cash account : $20,300

January 4 :

Debit : Accounts Payables account : $10300

Credit : Cash account : $10300

January 8 :

Debit : Inventory account : $90900

Credit : Accounts Payables : $90900

January 15 :

Debit : Cash account : $22800

Credit : Accounts Receivables account : $22800

January 19 :

Debit : Salaries expense account : $30600

Credit : Cash account : $30600

January 28 :

Debit : Utilities expenses : $17300

Credit : Cash account : $17300

January 30 :

Debit : Accounts Receivables account : $228000

Credit : Sales account : $228000

Debit : Cost of Goods Sold : $119000

Credit : Inventory account : $119000

Answer 2

See explanation section

Step-by-step explanation:

Jan. 1 Equipment Debit $20,300

Cash Credit $20,300

To record the purchase of equipment assuming by cash.

Jan. 4 Accounts payable Debit $10,300

Cash Credit $10,300

To record the cash paid to accounts payable.

Jan. 8 Purchase Debit $90,900

Accounts payable Credit $90,900

To record the purchase of additional inventory (supplies) on account

Jan. 15 Cash Debit $22,800

Accounts receivable Credit $22,800

To record the cash received from customers

Jan. 19 Salaries expense Debit $30,600

Cash Credit $30,600

To record the cash paid for salaries expense

Jan. 28 Utilities expense Debit $17,300

Cash Credit $17,300

To record the cash paid for utilities expense

Jan. 30 Accounts receivable Debit $228,000

Sales Credit $228,000

To record the sales on account.