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During September 20Y2, Lisa managed the tennis courts and entered into the following transactions:

9/1 Opened a business account by contributing $950.
9/1 Paid $300 for tennis supplies (practice tennis balls, etc.).
9/1 Paid $275 for the rental of video equipment to be used in offering lessons during September.
9/1 Arranged for the rental of two ball machines during September for $250. Paid $100 in advance, with the remaining $150 to be paid October 1.
9/30 Received $1,750 for lessons given during September.
9/30 Received $600 in fees from the use of the ball machines during September.
9/30 Paid $800 for salaries of part-time employees who answered the telephone and took reservations while Lisa was giving lessons.
9/30 Paid $290 for miscellaneous expenses.
9/30 Received $1,300 (325 per week) from the club for managing the tennis courts during September.
9/30 Determined that the cost of supplies on hand at the end of the month totaled $180; therefore, the cost of supplies used was $120.
9/30 Withdrew $400 (similar to Dividend) for personal use on September 30.

Journalize entries for above transactions.

User Lopisan
by
8.3k points

1 Answer

4 votes

Answer:

9/1 Opened a business account by contributing $950.

Dr Cash 950

Cr Lisa, capital, 950

9/1 Paid $300 for tennis supplies (practice tennis balls, etc.).

Dr Supplies 300

Cr Cash 300

9/1 Paid $275 for the rental of video equipment to be used in offering lessons during September.

Dr Rent expense 275

Cr Cash 275

9/1 Arranged for the rental of two ball machines during September for $250. Paid $100 in advance, with the remaining $150 to be paid October 1.

Dr Rental expense 250

Cr Cash 100

Cr Accounts receivable 150

9/30 Received $1,750 for lessons given during September.

Dr Cash 1,750

Cr Fees earned 1,750

9/30 Received $600 in fees from the use of the ball machines during September.

Dr Cash 600

Cr Fees earned 600

9/30 Paid $800 for salaries of part-time employees who answered the telephone and took reservations while Lisa was giving lessons.

Dr Wages expense 800

Cr Cash 800

9/30 Paid $290 for miscellaneous expenses.

Dr Miscellaneous expenses 290

Cr Cash 290

9/30 Received $1,300 (325 per week) from the club for managing the tennis courts during September.

Dr Cash 1,300

Cr Fees earned 1,300

9/30 Determined that the cost of supplies on hand at the end of the month totaled $180; therefore, the cost of supplies used was $120.

Dr Supplies expense 120

Cr Supplies 120

9/30 Withdrew $400 (similar to Dividend) for personal use on September 30.

Dr Lisa, drawings 400

Cr cash 400

User Supputuri
by
8.0k points
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