Question

1. Required --------   Prepare the journal entries for the above transaction using the accounts in the Chart of Accounts; Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accounts Payable, Notes Payable, Capital, Owners Withdrawal, Fees Earned, Insurance Expense, Rent Expense, Automobile Expense, Salary Expense. (Please show debits and credits)

Point Value = Journal entries (26),

The Woody Shore Company opened their doors to the business on August 31, 2014. The company incurred the following transactions during August 2014.

August 1              The owners deposited $87,000 into the business

August 2               Purchased supplies on credit, total $800.

August 2              Company purchased a 12 month insurance policy for their business $3,600

August 3               Paid rent for their office $2,800

August 5               Purchased equipment for $15,000 paid cash of $3,000 and signed a note with the bank for the remaining balance.

August 9               Completed service for customers and issued invoices, $7,500

August 14            Automobile expense for the company was $825

August 15            Received cash from customer for services provided $2,800

August 18            Paid monthly salary for the employees $4,000

August 22            Paid first installment for note on August 5, 450

August 25            Paid $300 on amount due from August 2

August 30            Customers from August 9 sent you cash for $3,000

August 31            Owners withdrew $2,100 from the company

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format For detailed answer refer to the supporting sheet.