Question

prepare the following journal entries:

1) The company sold (5) payroll service packages, covering 6 months of fully automated payroll service for $6,000 each. The regular price was $6,500 each, but the customers received a discount for paying for the service up front. Each company will receive 2 payroll runs per month. One on the 15th and one on the 30th of each month.

2) The company provided $5,600 of tax consulting services to clients on account.

3) The company ran its first payroll service for two of the companies. The other three companies were not yet ready to begin running payroll.

4) The company paid $2,100 cash for two weeks salary earned by two employees.

5) The company purchased $950 for October advertising on account.

6) The company provided $8,200 of tax services to clients and received payment.

7) The company paid a $687 electic bill for October utilities.

8) The company collected $2,000 from clients that were provided service on account on the 13th.

9) The company paid 1/2 of the bill for paper and supplies that was purchased on the 8th.

10) The company paid $2,100 cash for two weeks salary earned by two employees.

11) The company ran payroll service for all five companies that purchased service in October. 30 The company paid dividends of $700.

12) An employee and received a $300 advance for November travel for the company.

Answer 1

No.	Date	Genral Journal	Debit ($)	Credit ($)
(1)		Cash	30,000
		Unearned Service Revenue		30,000
(2)		Accounts Receivable	5,600
		Consulting Revenue		5,600
(3)		Unearned Service Revenue	1,000
		Service Revenue		1,000
(4)		Salaries Expense	2,100
		Cash		2,100
(5)		Advertising Expense	950
		Accounts Payable		950
(6)		Cash	8,200
		Consulting Revenue		8,200
(7)		Utilities Expense	687
		Cash		687
(8)		Cash	2,000
		Accounts Receivable		2,000
(9)		Accounts Payable	425
		Cash		425
(10)		Salaries expense	2,100
		Cash		2,100
(11)		Unearned Service Revenue	2,500
		Service Revenue		2,500
(11)		Dividend	700
		Cash		700
(12)		Advance to Employee	300
		Cash		300