Question

At the end of September 2021, total owner’s equity for Beaulieu Group Company was $7,840. During October, the following transactions occurred:

1.		Provided services to a client and received $1,815 cash.
2.		Paid $1,050 for October’s rent.
3.		Purchased $540 of supplies on account.
4.		Provided services to a client and billed the client $2,090.
5.		Collected $865 from the client billed in transaction 4.
6.		Received $8,240 cash from a client for services to be provided in November.
7.		Paid $7,820 cash for insurance coverage for the next 12 months.
8.		Paid for the supplies purchased on account in transaction 3.
9.		Shehla Beaulieu, the owner, withdrew $2,905 cash for personal use.

Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

	Account title and explanation	Debit	Credit
1	Accounts receivable	$1,815
	Service revenue		$1,815
	[To record credit sales]
2	Rent expense	$1,050
	Cash		$1,050
	[To record rent expense]
3	Supplies	$540
	Accounts payable		$540
	[To record purchase of supplies on account]
4	Accounts receivable	$2,090
	Service revenue		$2,090
	[To record credit sales]
5	Cash	$865
	Accounts receivable		$865
	[To record collections from customers]
6	Cash	$8,240
	Unearned service revenue		$8,240
	[To record cash received in advance from customers]]
7	Prepaid insurance	$7,820
	Cash		$7,820
	[To record cash paid in advance for insurance]
8	Accounts payable	$540
	Cash		$540
	[To record cash paid for accounts payable]
9	Shehla Beaulieu, Capital	$2,905
	Shehla Beaulieu, Drawings		$2,905
	[To record withdrawls for personal use]