Question

Problem 4-1 The following are September transactions for Lila Company.
Sep. 1 Issued common shares for $3,000 cash
Sep. 1 Borrowed $10,000 cash from the bank
Sep. 1 Paid $8,000 cash for a used truck
Sep. 3 Signed a contract with a customer to do a $15,000 job beginning in November
Sep. 4 Paid $600 for a one-year truck insurance policy effective September 1
Sep. 5 Collected fees of $2,000 for work to be performed in September and October
Sep. 7 Billed a client $5,000 for services performed today
Sep. 9 Paid $250 for supplies purchased and used today
Sep. 12 Purchased $500 of supplies on credit
Sep. 15 Collected $1,000 of the amount billed August 7
Sep. 16 Paid $200 for advertising in The News that ran the first two weeks of September
Sep. 20 Paid $250 of the amount owing regarding the credit purchase of September 12
Sep. 25 Paid the following expenses: rent for September, $350; salaries, $2,150; telephone, $50
Sep. 28 Called clients for payment of the balances owing from September 7
Sep. 31 Billed a client $6,000 for services performed today
Required:
Prepare journal entries in good form for each of the above transactions concerning the business of Lila Company. Use General Journal report presented in the chapter.

Answer 1

Journal entry

Date	General Journal	Debit	Credit
Sept 1	Cash	3000
	Common Stock		3000
Sep 1	Cash	10000
	Bank loan		10000
Sep 1	Truck	8000
	Cash		8000
Sep 3	No Journal entry
Sep 4	Prepaid insurance	600
	cash		600
Sep 5	Cash	2000
	Unearned service revenue		2000
Sep 7	Account receivable	5000
	Service revenue		5000
Sep 9	Supplies	250
	Cash		250
Sep 12	Supplies	500
	Account payable		500
Sep 15	Cash	1000
	Account receivable		1000
Sep 16	Advertising expense	200
	Cash		200
Sep 20	Account payable	250
	Cash		250
Sep 25	Rent expense	350
	Salaries expense	2150
	Telephone expense	50
	Cash		2550
Sep 28	No Journal entry
Sep 31	Account receivable	6000
	Service revenue		6000