Question

Student Name and ID no. _________________________________________________________

Write the journal entries in the given table for below transactions of Clean Corporation during June 2020.

1	Provided services to customers on account for $650.
2	Purchased a building using 10 year Note Payable for $200,000.
3	Paid salaries to employees, $2,600.
4	Received payment from customers to whom service was given in transaction 1
5	Paid $400 dividends to shareholders.

Answer

	Accounts	Debit	Credit
1
2
3
4
5

Answer 1

Based on the information available in the question, we can record the journal entries as follows:-

1.) Provided services to customers on account for $650.

Particulars	Amount	Amount
Accounts Receivable A/c	650
To Service Revenue A/c		650
(To record the service revenue on account)

2.)  Purchased a building using 10 year Note Payable for $200,000.

Particulars	Amount	Amount
Buildings A/c	200,000
To Notes Payable A/c		200,000
(To record the purchase of building via notes payable)

3.)  Paid salaries to employees, $2,600.

Particulars	Amount	Amount
Salaries Expense A/c	2,600
To Cash A/c		2,600
(To record the salaries paid to employees)

4.)  Received payment from customers to whom service was given in transaction 1

Particulars	Amount	Amount
Cash a/c	650
To Accounts Receivables A/c		650
(To record the cash received)

5.) Paid $400 dividends to shareholders.

Particulars	Amount	Amount
Dividends a/c	400
To Cash A/c		400
(To record the dividends paid in cash)

Note:- If the company had recorded a dividend payable earlier when the dividends were declared, the debit will be to the Dividends payable a/c.

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