Question

Miley Block is a building consultant. Shown below are (a) several accounts in her ledger with each account preceded by an identification number, and (b) several transactions completed by Block. Journalize the transactions for the company. 1. Accounts Payable 7. Telephone Expense 2. Accounts Receivable 8. Unearned Revenue 3. Cash 9. Common Stock 4. Consulting Fees Earned 10. Dividends 5. Office Supplies 11. Insurance Expense 6. Office Supplies Expense 12. Prepaid Insurance A. Received cash of $100,000 in advance from a customer for designing a building B. Purchased office supplies on credit in the amount of $750. C. Paid for the supplies purchased in B. D. Received the telephone bill of the business and immediately paid it, amount $150. E. Paid for a 3-year insurance policy of $1400.

Answer 1

Journal entries:
Date	Acc titles	Ref.	Debit $	Credit $
A	Cash	3	100000
	Unearned Revenue	8		100000
	(cash received in advance from customers)
B	Office Supplies	5	750
	Accounts Payable	1		750
	(purchase of office supplies on account)
C	Accounts Payable	1	750
	Cash	3		750
	(payment for the credit purchase)
D	Telephone Expense	7	150
	Cash	3		150
	(telephone bill received and paid-off)
E	Pre-paid Insurance	12	1400
	Cash	3		1400
	(purchase of 3 year's insurance)