ACC 201 Exam 1 Journal Entries

Purchased $9,000 in equipment, paying $3,000 in cash and signing a six-month note for the balance

Debit: equipment $9000 credit: cash $3000, notes payable $6000

Agreed to hire a new employee at a monthly salary of $3,900. The employee starts work next month

No journal entry required

Ordered equipment costing $21,000

No journal entry required

borrowed $5000 from a bank on a note due in six months

assets: cash $5000 liability: notes payable(short term) $5000

received $6000 from investors and issued them common stock

assets: cash $6000 stockholders equity: common stock $6000

purchased $2000 in equipment, paying $900 cash and promising the rest on a note due in one year

assets: equipment $2000 liabilities: cash $900, notes payable $1500

The company paid $2,350 cash for books purchased on account earlier in the month

debit: accounts payable $2350 credit: cash $2350

Paid $2,900 for a tabletop hockey game purchased last month on account

debit: accounts payable $2900 credit: cash $2900

Bill's paid $3,800 for the June electricity bill and received the July bill for $4,150, which will be paid in August

debit: accounts payable $3800 credit: cash $3800 debit: utility expense $4150 credit: accounts payable $4150

Paid $630 toward supplies purchased on account $1260

debit: accounts payable $630 credit: cash $630

Paid $9,600 cash on accounts payable

debit: accounts payable $9600 credit: cash $9600

Consulted for customers in January for fees totaling $20,900, due in February

debit: accounts receivable $20900 credit: service revenue $20900

Swing Hard billed a customer $215 for services provided between February 25 and February 28. The bill is to be paid in March.

debit: accounts receivable $215 credit: service revenue $215

Bill's billed a customer for $680 for a party held at the center on the last day of July. The bill is to be paid in August

debit: accounts receivable $680 credit: service revenue $680

Received $11,350 cash for consulting services to be performed in February

debit: cash $11350 credit: deferred revenue $11350

Received $13,000 cash for consulting services rendered in December

debit: cash $13000 credit: accounts receivable $13500

The men's and women's bowling leagues gave Bill's advance payments totaling $1,400 for the fall season that starts in September

debit: cash $1400 credit: deferred revenue $1400

Bill's collected $16,300 from customers for services related to games played in July

debit: cash $16300 credit: service revenue $16300

Borrowed $18,000 cash and signed a note due in two years

debit: cash $18000 credit: notes payable(long term) $18000

Received $18,400 cash for consulting services rendered in January

debit: cash $18400 credit: service revenue $18400

Swing Hard collected $23,000 from customers for lesson services given in February

debit: cash $23000 credit: service revenue $23000

Bill's received $2,400 from credit sales made to customers last month (in June)

debit: cash $2400 credit: accounts receivable $2400

Received $39,000 cash from the investors who organized Down, Incorporated

debit: cash $39000 credit: common stock $39000

Borrowed $4,240 from a local bank on a note due in six months

debit: cash $4240 credit: notes payable(short term) $4240

Received $4,930 cash from investors and issued common stock to them

debit: cash $4930 credit: common stock $4930

Provided $104,600 in service to customers, with $99,600 on account and the rest received in cash

debit: cash $5000, accounts receivable $99600 credit: service revenue $104600

Joel's friend Sam lent $5,700 to the business. Sam had Joel write a note promising that Bookmart.com would repay the $5,700 in four months. Because they are good friends, Sam is not going to charge Joel interest

debit: cash $5700 debit: notes payable(short term) $5700

Received $605 on account from a customer

debit: cash $605 credit: accounts receivable $605

Blue Light Arcade received $80 cash on account for a birthday party held two months ago

debit: cash $80 credit: accounts receivable $80

Borrowed $98,500 from a bank, signing a short-term note payable

debit: cash $98500 credit: notes payable(short term) $98500

Purchased $12,200 of equipment, paying 25 percent in cash and owing the rest on a note due in 2 years

debit: equipment $12200 credit: cash $3050, notes payable $9150

Purchased equipment for $158,000 in cash

debit: equipment $158000 credit: cash $158000

Purchased $1,600 in equipment, paying $500 cash and promising the rest on a note due in one year

debit: equipment $1600 credit: cash $500, notes payable(short term) $1100

Received the equipment ordered for $21000, paid for half of it, and put the rest on account

debit: equipment $21000 credit: cash $10500, accounts payable $10500

The company purchased equipment for $5,700 cash. The equipment is expected to be used for 10 or more years

debit: equipment $5700 credit: cash $5700

The company purchased an air hockey table for $5,800, paying $2,800 cash and signing a short-term note for $3,000

debit: equipment $5800 credit: cash $2800, notes payable $3000

Joel's business bought $8,700 worth of inventory from a publisher. The company will pay the publisher within 45-60 days

debit: inventory $8700 credit: accounts payable $8700

Bookmart.com repaid the $5,700 loan established to be paid in a notes payable in four months

debit: notes payable $5700 credit: cash $5700

Repaid a $5,900 bank loan that had been outstanding for six months. (Ignore interest.)

debit: notes payable(short term) $5900 credit: cash $5900

Bill's paid $2,800 to plumbers for repairing a broken pipe in the restrooms

debit: repairs and maintenance expense $2800 credit: cash $2800

Incurred and paid employee wages of $2,800

debit: salaries and wages expense $2800 credit: cash $2800

Bill's paid $5,645 to employees for work in July

debit: salaries and wages expense $5645 credit: cash $5645

Swing Hard paid $6,450 to its golf instructors for the month of February

debit: salaries and wages expense $6450 credit: cash $6450

Bought and received $1,000 of supplies on account.

debit: supplies $1000 credit: accounts payable $1000

Paid $1,000 cash for supplies

debit: supplies $1000 credit: cash $1000

Bought and received $1,260 of supplies on account

debit: supplies $1260 credit: accounts payable $1260

Bought and received $1,400 of supplies on account

debit: supplies $1400 credit: accounts payable $1400

Incurred and paid $5,350 cash for travel costs during the year.

debit: travel expenses $5350 credit: cash $5350

Swing Hard received an electricity bill for $1,380 for the month of February, to be paid in March

debit: utility expense $1380 credit: accounts payable $1380

Received utility bill for January for $1,880, due February 15

debit: utility expense $1880 credit: accounts payable $1880

Incurred $30,400 in utility expenses during the year, of which $24,600 was paid in cash and the rest owed on account

debit: utility expense $30400 credit: cash $24600, accounts payable $5800

Swing Hard paid $2,400 for electricity used in the month of January

no expense incurred in February, relate to expenses from January debit: accounts payable$2400 credit: cash $2400

Swing Hard collected $4,500 in advance payments for services to start in June

no revenue collected in February, record as deferred revenue(current liability) until service provided debit: cash $4500 credit: deferred revenue $4500

Swing Hard sold a gift card for golf lessons for $190 cash in February

no revenue collected in February, recorded as deferred revenue until used debit: cash $190 credit: deferred revenue $190

Swing Hard received $6,900 from services provided on account to customers in January

no revenue collected in February, relate to revenues in January debit: cash $6900 credit: accounts receivable $6900