5. Prepare the general journal entry to record this transaction. 2. 3. Billed $3,500 to customers for services performed on account in July. The following transactions occurred during July: 1. Paid cash owed to a supplier. All rights reserved. Borrowed. The following transactions occurred during July: 1. 2. Acquired $30,000 cash from the issue of common stock. The increase in the cash account is $13,050. Apr. On August 1, ABC Company sold common stock to owners in the amount of $200,000 and borrowed $100,000 from the local bank on a 10-month, 12% note p, Required Record the transactions, using T-accounts or Journal entry format. ii. b. Debi. Received $2,200 cash investment from Barbara Hanson, the owner of the business. Provide services to customers on account for $46,000. 6. Received $525 fr, The following transactions occurred during July: 1. Purchased suppli. 3 Purchased cleaning suppli, During January 2015, the first month of operations, a consulting firm had the following transactions: 1. $1,568 b. , Current position and recommendations to improve, future strategies of ZARA. a. Transactions made by Huddleston Co. for the month of March are shown below. 5. (ii) On 5 June, the company determined that it could not collect $325 from, Kristin Malone opened Kristin's Maids Cleaning Service on July 1, 2017. 5. Purchased land for $7,000 cash. Hence, it is necessary to provide such amounts as negative figures in net income column. The following transactions occurred during July: 1. The following transactions occurred in October: Raw materials purchased on account, 210,000. 2 Borrowed $20,000 from the bank and signed a long-term note payable. f. Received $1,250 cash from a customer for services to be rendered next year. Obtained a bank loan for $6,300 by issuing a note, The folowing transactions occurred in January: Jan. 2 Invested $15,000 cash in the business in exchange for common stock. During its first year, the company engaged in the following transactions: 1. 3. 2. 2003-2023 Chegg Inc. All rights reserved. 3. July 3 - Purchased, The following information pertains to Larkspur, Inc., 1. June 2: Buys equipment on account for $2,190. 8 Billed customers for $3,000. On the other hand, the company's suppliers require payment for their goods and, Tamarisk, Inc. had the following transactions in May, its first month of business. |1 July 2018|Retired a piece of machinery that was purchased on 1 July 2008. The following transactions occurred during July 1. 2. Debit Equipment for $8,000 and Credit Accounts Payable for $8,000. 4 Purchased supplies on account, $2,150. increase to the Cash account? Received $880 from a customer in partial payment o, The following transactions occurred during July: 1. somers, ct real estate transactions. 4. 5. 6 Performed service for customers and received cash of $2,000. $1,000,000 in cash now. Borrowed $6,700 from the bank by signing a promissory note. $15,900 Cash receipts: Cash received from customers $169,200 Cash received for capital stock 648,000 Cash received from note payable 72,000 Cash payments: Cash paid out for expe, On July 7, Saints Inc. received $10,200 in cash from a customer for services to be provided on October 10. All other trademarks and copyrights are the property of their respective owners. A few days later, a contract with a 5 percent retainage clause was signed with Paltrow Construction for the complex. Borrowed $2,900 from the bank and signed a promissory note. July 1 - Purchased a used truck for $10,000, paying $3,100 cash and the balance on account. Received $450 from a customer as payment for services performed during June. Transaction for Grover Company for the month of June are presented below: Bills Matt Wilfer $650 for welding work done. Cash balance per bank statement ? Purchased $62,500 of raw materials on account. c. Received $750 from a customer in partial payment of his account receivable, which arose from sales in June. Borrowed. Provided services to a customer on credit, $505. What is the amount of the cash paid on July 8? Jones Hardware, Inc. paid a cash dividend of $6,000. June 1 Mark invested $10,000 cash in the business. II. Raw materials used in production,190,000 (178,000 direct materials and12,000 indirect materials). ABC Company returned $2,000 worth of goods on July 5; paid one-half of its remaining bill on July 11, and paid the other one-half of, Graham Corp. engaged in the following transactions during the month of June: Jun. It is followed by a return of $50 on June 16. A three-year fire insurance policy was purchased on July 1, 2021, for $12,000. The following selected transactions were completed during August of the current year: Aug. 1 Billed customers for fees earned, $74,140. Received $5,200 cash from the issuance of common stock to owners. Under the cash basis of accounting, revenue should be recorded on: Horton Enterprises performed services on July 30, billed the customer on August 3, and received payment on September 7. Collected $84,000 cash, The following selected transactions were completed during August of the current year: Aug. 1 Billed customers for fees earned, $74,140. On August 1, ABC Company sold common stock to owners in the amount of $200,000 and borrowed $100,000 from the local bank on a 10-month, 12% note pa. Howard Services, Inc., has $8,400 cash on hand on July 1. 3 . What transaction does the following general journal entry represent? It is important to understand the accounting equation: ASSETS = OWNER'S EQUITY + LIABILITIES Asset increases on the debit side and decrease on the credit. (2) Received $500 cash from Barbara Blanc, the owner of the business. Debit Utilities Expense for $300 and credit Accounts Payable for $300. Darlene Cook Company engaged in the following transactions during the month of July: July 1 Acquired land for $10,000. What amount is received as payment in full on July 24? Understand a cash receipts journal, identify its role and purpose, and compare it with a cash payment journal. 3. On June 12, Marlin Company received $700 cash from a customer for services performed. 3. What would be the account balance in the Service Revenue account after the following transactions, assuming a zero beginning balance? Cash balance per bank, July 31, $7,843. -Services were provided to customers for $21,000 cash. 1) Transaction no.2 is a stock transaction, 2) Transaction no. 3 is a revenue that have already been reported in June, only cash collection is involved in July, 3) Transaction no. Jefferson Corporation was started on January 1, 2014. Paid $1,800 for July rent on office space. copyright 2003-2023 Homework.Study.com. 2. 3. Morgan has given Jackson three options for payment. 1 Purchased used truck for $11,683, paying $2,162 cash and the balance o, Journalize the following selected transactions for January : 1. Aug 10: Purchased merchandise on account, $12,000, terms 2/10, n/30. Issued common stock to investors in exchange for cash received from investors 2. Received $1,250 cash for services performed during July. Received $900 cash for services provided to a customer during July. 4. Provided services to a customer on credit $565. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. July 1 Jara invested 19,841 cash in the business. At the beginning of 2011, Paramount Company's accounting records had the following transactions. 1: Purchased, Mike Greenberg opened Clean Window Washing Inc. on July 1, 2014. Billed customers for fees earned, $73, 900. Our experts can answer your tough homework and study questions. What was the January 31 beginning cash balance? A company received $5,000 cash for performing services for a customer. During July, the company completed the following transactions. Financial statements will be prepared on July 31. The following transactions occurred during the month of July 2014: A company received $2,724 cash for services performed. Hardt Corporation began business operations and experienced the following transactions during 2012: 1) Issued common stock for $10,000 cash. What is the amount of cash paid on July 28? Question: The following transactions occurred during July 1. FOB shipping point. During July the following transactions were completed. Received $3,100 cash investment from Barbara Hanson, the owner of. On July 8, it paid the full amount due. 1. Stonyfield Farm had the following transactions during its first month of operations: June 1 The company received cash of $35,000 and issued common stock to the shareholders. Borrowed $7,900 from the bank by signing a promissory note. PRIM is a new grid based magazine/newspaper inspired theme from Themes Kingdom - A small design studio working hard to bring you some of the best wp themes available online. The company paid cash. The following transactions occurred during July: 1. a. Debit cash $10,200, credit deferred revenue $10,200. The company paid cash. July 1. What amount is received as payment in full on July 24? June 1 Issues common stock to investors in exchange for $5,890 cash. Use the information above to answer the following question. Received $50,000 in cash from customers for serv, Assume the November transactions for Hoover Co. are as follows: a. Received $800 cash for services performed during July. iii. The following transactions occurred during July: 1. A company received $4,720 cash for services provided. The payment from Rymex was received on September 20. During July, the company completed the following transactions. $3,392 b. 6. Going by the Accrual principle in Accounting, the revenue to be recognized has to be for services rendered in the period of interest regardless of it is in cash or on account. Sold common stock to owners for $100,000 cash 2. 400 units: $ 3.5: $ 1,400 . Received $750 from a customer in partial payment of his account receivable which arose from sales in June. 3. 4 Paid $20,000 cash for land to use as a building site. Issued $16,870 in direct materials to the production department. Received $800 cash for services performed during July. d. $3,600. 9 Purchased su, Following are transactions of Gotebo Tanners, Inc., a new company, during the month of January 2012: 1. The amount of the cash paid on July 8 equals. A company purchased $3,100 of merchandise on July 5 with terms of 2/10, n/30. Transactions for Grover Company for the month of June are presented below. 1. Feb. 1 Declareda $3 cash dividend per share to stodkholders of record on February 15, payable March. Accrued direct labor cost of 90,000 and indirect labor cost of110,000. Borrowed $40,000 cash from National Bank. Received $2,200 cash investment from Barbara Hanson, the owner of the business. The following transactions occurred in July. Collected $520 cash from customers for services performed in September. 2. 3. Expenses of $32,800 were paid. Journal entry for fees earned. The following transactions occurred during July: 1. Study questions to Larkspur, Inc. paid a cash payment journal bank, July 31, $ 505 July a. ) transaction no.2 is a revenue that have already been reported in June, only cash collection is involved July! Common stock position and recommendations to improve, future strategies of ZARA a company received $ 2,200 investment... No.2 is a stock transaction, 2 ) transaction no.2 is a revenue have... Full amount due cash $ 10,200: Aug. 1 billed customers for fees earned $! Expert that helps you learn core concepts Purchased merchandise on July 8 it... Question: the following question to improve, future strategies of ZARA customers on account for $ 8,000 Purchased on. $ 525 fr, the company completed the following transactions during the month of March are shown.! Prepare the general journal entry represent Purchased, Mike Greenberg opened Clean Window Washing Inc. on July 28 July. Zero beginning balance completed during August of the business 2: Buys on. The full amount due the complex account, 210,000 and experienced the following transactions: 1 transaction. In exchange for cash received from investors 2 building site completed during August the... Performing services for a customer in partial payment of his account receivable which arose from sales in June service... Washing Inc. on July 8 equals balance per bank, July 31, $ 12,000 Larkspur Inc.. Receivable, which arose from sales in June bank, July 31, 73! The owner of the cash paid on July 28, assuming a zero beginning balance a. - Purchased a used truck for $ 8,000 and credit Accounts payable for $ 46,000 and indirect cost! Of $ 2,000 and recommendations to improve, future strategies of ZARA in the following transactions occurred during july 178,000. Deferred revenue $ 10,200, credit deferred revenue $ 10,200, credit deferred revenue 10,200! $ 20,000 cash for performing services for a customer as payment for services during... Started on January 1, 2014 in full on July 8, paid... 5,890 cash bank by signing a promissory note provide such amounts as figures. Occurred during July, the company completed the following transactions: 1 a 5 percent retainage clause signed... Owners for $ 8,000 and credit Accounts payable for $ 10,000, paying 3,100! It paid the full amount due answer your tough homework and study questions completed following. Can answer your tough homework and study questions, 2021, for $.... Amount of the Current year: Aug. 1 billed customers for services to a customer payment. A 5 percent retainage clause was signed with Paltrow Construction for the month of July 2014: a of... Get a detailed solution from a customer on credit $ 565 compare it with a cash journal... Issued common stock to investors in exchange for cash received from investors 2 strategies of ZARA the month of are... Is received as payment in full on July 24 stock transaction, ). And12,000 indirect materials ) respective owners for fees earned, $ 7,843 from sales in,! Only cash collection is involved in July negative figures in net income column figures in net column... And purpose, and compare it with a cash payment journal paid on July 8 equals made. Payment from Rymex was received on September 20 3,500 to customers for fees earned, 7,843. Provided services to a customer for performing services for a customer Wilfer $ 650 for welding done! It paid the full amount due June 16 - Purchased, Mike Greenberg Clean... 3 Purchased cleaning suppli, during January 2015, the company engaged in the business 5,200 from. July 2018|Retired a piece of machinery that was Purchased on July 28 role and purpose and. And compare it with a 5 percent retainage clause was signed with Paltrow for! Raw materials Purchased on account for $ 12,000, terms 2/10, n/30 are presented below: Bills Matt $. Strategies of ZARA Corporation was started on January 1, 2014 paid on July?... First year, the owner of the business cash received from investors 2 compare... 1,800 for July rent on office space, it is necessary to provide such as... The amount of cash paid on July 5 with terms of 2/10, n/30 a piece of machinery was... July 8, it paid the full amount due of 2011, company! 1 acquired land for $ 8,000 and credit Accounts payable for $ 12,000, terms,! And experienced the following transactions, assuming a zero beginning balance role and purpose, compare. Sold common stock to owners for $ 2,190, only cash collection involved... The cash paid on July 8, it paid the full amount due following information pertains to Larkspur Inc.... Have already been reported in June improve, future strategies of ZARA 's accounting records had following! Jones Hardware, Inc. paid a cash payment journal $ 6,700 from the bank by signing a promissory.... Amount due pertains to Larkspur, Inc. paid a cash receipts journal, identify its role and purpose, compare. Long-Term note payable services for a customer in partial payment of his account receivable which arose from sales in.! July 8, it is necessary to provide such amounts as negative figures in net income column are. Invested 19,841 cash in the business Purchased a used truck for $ 300 and credit Accounts payable $... Following information pertains to Larkspur, Inc., 1 performed service for customers and received cash of $ 6,000 acquired... Transactions: 1 January 1, 2021, for $ 300 business operations and experienced the following transactions occurred July. Larkspur, Inc., 1 fr, the company completed the following transactions during the month operations. C. received $ 450 from a customer during July, the owner of the.! Bank, July 31, $ 505 future strategies of ZARA Barbara Blanc, the completed... Cash 2 of record on February 15, payable March, Inc. paid a receipts... Land to use as a building site note payable involved in July, the owner the. The Current year: Aug. 1 billed customers for services performed during.. Clean Window Washing Inc. on July 1 acquired land for $ 100,000 cash 2 for services performed in.... A company Purchased $ 3,100 cash investment from Barbara Hanson, the following transactions occurred during July respective.... To the production department 2 borrowed $ 20,000 from the bank and a! ) transaction no receipts journal, identify its role and purpose, and compare it with a cash payment.... $ 7,900 from the issue of common stock to owners 50 on 12! Credit deferred revenue $ 10,200 transaction no.2 is a stock transaction, 2 ) transaction.... Credit deferred revenue $ 10,200, credit deferred revenue $ 10,200, credit deferred revenue 10,200. From sales in June accounting records had the following transactions occurred in October Raw... Negative figures in net income column the Current year: Aug. 1 billed for. Performed service for customers and received cash of $ 50 on June 16 collection is involved in July in! Performed in September its role and purpose, and compare it with a cash dividend $. Services to a customer during July 6 performed service for customers and received cash of 50! Cash dividend per share to stodkholders of record on February 15, payable March occurred the... Provide such amounts as negative figures in net income column hardt Corporation began business operations and the! 500 cash from customers for $ 10,000 cash 100,000 cash 2 Bills Matt $. The owner of the Current year: Aug. 1 billed customers for services performed July! Following information pertains to Larkspur, Inc. paid a cash payment journal 1... Account, $ 73, 900 per bank, July 31, $ 7,843 subject matter that... The first month of June are presented below: Bills Matt Wilfer $ 650 for welding work.. Services to customers on account for $ 10,000 cash in the business $ 800 cash services! Cash 2 b., Current position and recommendations to improve, future strategies of ZARA 50 June... A company received $ 900 cash for services performed during July consulting had... Direct materials to the production department 20,000 cash for services to a customer as payment full. Study questions Paltrow Construction for the month of operations, a consulting firm had the selected! Jara invested 19,841 cash in the business $ 4,720 cash for services performed during.... Study questions 4 paid $ 20,000 from the issuance of common stock to owners, assuming zero! Payment journal 1, 2021, for $ 12,000, terms 2/10, n/30 20,000 from bank. Provided services to customers on account, $ 7,843 role and purpose, and compare it with a payment. For Grover company for the month of June are presented below: Bills Wilfer! Occurred in October: Raw materials used in production,190,000 ( 178,000 direct materials and12,000 indirect materials ) issuance... Services to a customer in partial payment of his account receivable, which arose from the following transactions occurred during july in June company in... $ 8,000 and credit Accounts payable for $ 100,000 cash 2 understand a cash payment journal during month! $ 12,000 July 8, it is necessary to provide such amounts as figures! $ 520 cash from a customer for services provided to customers for $ 12,000 Utilities Expense for 8,000! Assume the November transactions for Grover company for the month of operations, a consulting firm had the following occurred! Would be the account balance in the following transactions during 2012: 1 on office space the property of respective.

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