Question

Performed $20,000 of services on account.

Collected $17,400 cash on accounts receivable.
Paid $4,900 cash in advance for an insurance policy.
Paid $990 on accounts payable.
Recorded the adjusting entry to recognize $3,900 of insurance expense.
Received $7,700 cash for services to be performed at a later date.
Purchased land for $1,420 cash.
Purchased supplies for $1,200 c
Required
Record each of the above transactions in general journal form and then show the effect of the transaction in a horizontal statements model.
The first transaction is shown as an example.
Transaction Account Titles Debit Credit
Accounts receivable 8,200
Service revenue 8,200

Answer 1

Journal of given entries

Step-by-step explanation:

• Debtor ac dr 20000

to Sales ac 20000

• Cash ac dr 17400

to Account Receivables ac 17400

• Prepaid Insurance ac dr 4900

to Cash ac 4900

• Accounts Payable ac dr 990

to Cash ac 990

• Insurance ac dr 3900

to Prepaid Insurance ac 3900

• Cash ac dr 7700

to Advance ac 7700

• Land ac dr 1420

to Cash ac 1420

• Purchase ac dr 1200

to Cash ac 1200