Question

Journal Entries During July 2017, Krogue, Inc., completed the following transactions. Prepare journal entry for each transaction. Received $320,000 for 80,000 shares of capital stock. 4 Purchased $100,000 of equipment, with 75% down and 25% on a note payable. Paid utilities of $2,300 in cash. 9 Sold equipment for $15,000 cash (no gain or loss). 13 Purchased $250,000 of supplies, paying 30% down and 70% on credit. Paid $6,000 cash insurance premium for July. 18 Provided services for $81,000 to customers on account to be paid at a later date. /20 Collected $8,500 from accounts receivable. /24 Provided services for $43,000 to customers for cash. /27 Paid property taxes of $1,200. (30 Paid $175,000 of accounts payable for supplies purchased on July 13. July 14

Answer 1

Krogue, Inc.

for the month of July

Journal

Date	Particulars	Folio	Debit ($)	Credit ($)
July 2017	Bank      Share of Stock (Received for 80,000 shares of capital stock)		320,000	320,000
4 July 2017	Equipment      Bank      Notes Payable (Purchase of Equipment on Cash and Credit basis)		100,000	75,000 25,000
4 July 2017	Utilities      Cash (Paid for Utilities)		2,300	2,300
9 July 2017	Cash      Equipment (Equipment sold for Cash)		15,000	15,000
13 July 2017	Goods      Cash      Accounts Payable (Purchased of Supplies)		250,000	75,000 175,000
13 July 2017	Insurance Premium      Cash (Paid Insurance Premium for July)		6,000	6,000
18 July 2017	Accounts Receivable      Services/Sales (Provide services on credit)		81,000	81,000
20 July 2017	Cash      Accounts Receivable (Amount Received from Debtors)		8,500	8,500
24 July 2017	Cash      Services/Sales (Services on cash basis)		43,000	43,000
27 July 2017	Property Tax      Cash (Property Tax Paid)		1,200	1,200
30 July 2017	Accounts Payable      Cash (Accounts payable paid)		175,000	175,000