Question

Smith Inc. engaged in the following transactions in 2019.

Jan 1	The owner invested $100,000 into the company in exchange for 5,000 shares of no-par common stock.
Jan 1	Purchased a computer system for $40,000.
Jan 14	Purchased $1,200 of supplies on account.
Feb 25	Invoiced clients for services provided on account, $36,000.
Mar 31	Paid rent for two years, $19,200.
April 1	The company borrowed $50,000 from Bank of America.
May 14	Collected $11,500 on account.
June 1	Purchase a delivery van to delivery copies to customers, the van had a purchase price of $53,000, taxes on the van were $5,000 and document charges of $1,500 were paid.
July 31	Paid $800 on account for supplies purchased on January 14.
Aug 10	Received cash for services provided, $10,200.
Sept 1	Paid utilities of $4,000.
Oct 1	Received $30,000 in advance for services to be provided in the future.
Nov 15	Paid for an ad in the local newspaper, $1,500.
Nov 27	Processed employee payroll and employer taxes, gross earnings were $4,000.
Nov 30	Paid the employee salaries, taxes are not due until January.
Dec 15	The company declared and paid $6,000 in dividends.
Dec 30	Invoiced clients for services performed totaling $8,500.
Dec 27	Processed employee payroll and employer taxes, gross earnings were $4,000.
Dec 30	Paid the employee salaries, taxes are not due until January.

Smith Inc. Journal General – External Transactions                                             

Date	Account Name	Debit	Credit

Answer 1

Please Note : Journal Entries related to payroll is not completed due to lack of information.

Date	Account Name	Debit	Credit
1-Jan	Bank A/c	100000
	Owner's Equity Capital A/c		100000
1-Jan	Computer System A/c	40000
	Bank A/c		40000
14-Jan	Supplies A/c	1200
	Accounts Payables A/c		1200
25-Feb	Accounts Receivables A/c	36000
	Revenue A/c		36000
31-Mar	Advance Rent A/c	19200
	Bank A/c		19200
1-Apr	Bank A/c	50000
	Bank of America Loan A/c		50000
14-May	Bank A/c	11500
	Accounts Receivables A/c		11500
1-Jun	Delivery Van A/c	59500
	Bank A/c		59500
31-Jul	Accounts Payables A/c	800
	Bank A/c		800
10-Aug	Cash A/c	10200
	Revenue A/c		10200
1-Sep	Utilities A/c	4000
	Bank A/c		4000
1-Oct	Bank A/c	30000
	Customer Advances A/c		30000
15-Nov	Advertising Charges A/c	1500
	Bank A/c		1500
27-Nov	Payroll-Need more information	xxx	xxx
30-Nov	Payroll-Need more information	xxx	xxx
15-Dec	Dividends A/c	6000
	Bank A/c		6000
15-Dec	Retained Earnings A/c	6000	6000
	Dividends A/c
30-Dec	Accounts Receivables A/c	8500
	Revenue A/c		8500
27-Dec	Payroll-Need more information	xxx	xxx
30-Dec	Payroll-Need more information	xxx	xxx