Question

The May transactions of Concord Corporation were as follows. May 4 Paid $860 due for supplies previously purchased on account. 7 Performed advisory services on account for $7,490. 8 Purchased supplies for $840 on account. 9 Purchased equipment for $1,940 in cash. 17 Paid employees $500 in cash. 22 Received bill for equipment repairs of $810. 29 Paid $1,190 for 12 months of insurance policy. Coverage begins June 1. Journalize the transactions

Answer 1

May 4

Debit Accounts Payable $860

Credit Bank/Cash account $860

Being entries to record payment for supplies purchased previously on Account

May 7

Debit Accounts Receivable $7,490

Credit Service revenue $7,490

Being entries to recognize service revenue made on accounts

May 8

Debit Supplies account $840

Credit Accounts Payable $840

Being entries to recognize supplies purchased on account

May 9

Debit Fixed assets account $1,940

Credit Cash account $1,940

Being entries to record equipment purchased with cash

May 17

Debit Salaries expense $500

Credit Cash account $500

Being entries to record payment of salaries

May 22

Debit Maintenance and repairs $810

Credit Accounts Payable $810

Being entries to recognize repairs expense

May 29

Debit Prepaid Insurance $1,190

Credit Cash account $1,190

Being entries to recognize advance payment for insurance

Step-by-step explanation:

To purchase items on account is to purchase on credit. This creates a liability in the form of accounts payable. An increase in assets or expenses is a debit entry while a decrease is a credit entry. For liability or an income, a credit is an increase while a debit is a decrease.