Question

Below are the transactions for Ute Sewing Shop for March, the first month of operations.
  
March   1 Issue common stock in exchange for cash of $1,500.
March   3 Purchase sewing equipment by signing a note with the local bank, $1,200.
March   5 Pay rent of $450 for March.
March   7 Martha, a customer, places an order for alterations to several dresses. Ute estimates that the alterations will cost Martha $650. Martha is not required to pay for the alterations until the work is complete.
March 12 Purchase sewing supplies for $115 on account. This material will be used to provide services to customers.
March 15 Ute delivers altered dresses to Martha and receives $650.
March 19 Ute agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Ute receives $550 from Bob and promises the suits to be completed by March 25.
March 25 Ute delivers 10 altered business suits to Bob.
March 30 Pay utilities of $80 for the current period.
March 31 Pay dividends of $75 to stockholders.  

Record each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
  

Journal entry worksheet

Note: Enter debits before credits.

	Date General Journal Debit Credit March 01

Answer 1

Journal entries:

No entry is passed on March 7th as neither cash was received nor service was rendered on that day.

On march 25, cash was received in advance for services to be rendered in future. It's a liability, so deferred revenue is debited.

Credit Date General journal Debit Mar 01 Cash 1,500 1,500 Common stock (Being common stock issued for cash) Mar 03 Equipment (sewing) Notes payable 1,200 1,200 (Being sewing equipment purchased by issuing a note) Mar 05 Rent expense 450 Cash 450 |(Being rent paid in cash) Mar 07 No entry Mar 12 Supplies 115 Accounts payable (Being supplies purchased on credit) 115 Mar 15 Cash 650 Service revenue 650 (Being cash received against service rendered) Mar 19 Cash 550 Deferred revenue 550 (Being revenue received in advance for services to be delivered in future) Mar 25 Deferred revenue 550 Service revenue 550 (Being service rendered against cash received in advance) Mar 30 Utility expenses Cash |(Being utility expenses paid in cash) Mar 31 Dividends 75 Cash 75 (Being dividends paid to stockholders) 80 80