Question

Transactions for the Oriole Company for the month of November are presented below. 1. Stockholders invested an additional $41,000 cash in the business. 2. Purchased land costing $17,200 for cash. 3. Purchased equipment costing $51,000 for $4,500 cash and the remainder on credit. 4. Purchased supplies on account for $600. 5. Paid $2,900 for a one-year insurance policy. 6. Received $3,400 cash for services performed. 7. Received $4,900 for services previously performed on the account. 8. Paid wages to employees for $2,400. 9. Paid dividends to stockholders of $450.

Journalize each transaction.

Answer 1

Please see below for the journal entries of Oriole Company.

Step-by-step explanation:

Oriole Company

1.

Debit: Cash $41,000

Credit: Common Stock $41,000

To record additional paid in capital.

2.

Debit: Land $17,200

Credit: Cash $17,200

To record purchase of land.

3.

Debit: Equipment $51,000

Credit: Cash $4,500

Credit: Accounts Payable ($51,000 - $4,500) $46,500

To record Purchase of equipment.

4.

Debit: Supplies $600

Credit: Accounts Payable $600

To record purchase of supplies.

5.

Debit: Insurance Expense $2,900

Credit: Cash $2,900

To record payment of Insurance.

6.

Debit: Cash $3,400

Credit: Services $3,400

To record cash received from services.

7.

Debit: Cash $4,900

Credit: Accounts Receivables $4,900

To record cash received from services performed on account.

8.

Debit: Wages Expense $2,400

Credit: Cash $2,400

To record payment of wages.

9.

Debit: Dividends Payable $450

Credit: Cash $450

To record payment of dividends.

Answer 2

With the given data from 1-9, the journal will be

1.Cash. 40000(DR)

Equity common stock. 400000(CR)

2. Land 1800(DR)

Cash 18000(CR)

3. Equipment 54000(DR)

Cash 4500(CR)

Account Payable 49500(CR)

4. Supplies 800(DR)

Account Payable 800(CR)

5. Prepaid Insurance 3000(DR)

Cash 3000(CR)

6 Cash. 2000(DR)

Service Revenue 2000(CR)

7. Cash 5000(DR)

Account Receivable 5000(CR)

8. Wages 2500(DR)

Cash 2500(CR)

9. Dividend 400 (DR)

Cash. 400(CR)