Question

1	INVESTED $400,000 CASH FOR COMMON STOCK
2	PURCHASED LAND FOR CASH OF $54,000
3	RECEIVED $25,000 CASH FROM A NOTES PAYABLE
4	PURCHASED EQUIPMENT FOR $34,000 with $5,000 CASH, REMAINING ON ACCOUNT
5	PAID RENT FOR $2,300 CASH
6	PURCHASED $3,950 IN SUPPLIES IN CASH
7	INCURRED ADVERTISING EXPENSE $2,300 ON ACCOUNTS PAYABLE
8	PERFORMED SERVICES $46,000, RECEIVED $4,000 CASH, BALANCE ON ACCOUNT
9	PAID $900 CASH ON DIVIDENDS
10	PREPAID INSURANCE FOR 2 YEARS OF $7,200
11	PAID $4,000 CASH FOR UTILITIES
12	PAID $3,600 FROM ACCOUNTS PAYABLE
13	PAID $240 ON INTEREST EXPENSE
14	INCURRED SALARIES & WAGES PAYBLE FOR 3 OUT OF 5 DAYS FOR 2 EMPLOYEES AT $900 EACH AND PAID CASH OF $7,200 IN CASH.
15	RECEIVED $18,000 CASH FROM ACCOUNTS RECEIVABLE
16	RECEIVED $5,000 CASH FOR FUTURE SERVICES
17	REMAING BALANCE ON ACCOUNT OF SUPPLIES IS $2000
18	EXPENSED UTILITIES ON ACCOUNT FOR $450.00
19	INSURANCE EXPENSED FOR 1 MONTH
20	EQUIPMENT DEPRECIATION IS OF A 5 YEAR SCHEDULE, INDICATE EXPENSE FOR THE MONTH
21	PERFORMED SERVICES FOR $2,700 ON ACCOUNT
	ADJUSTING ENTRIES
22	PERFORMED SERVICES ON ACCOUNT WAS ACTUALLY $27,000 NOT $2,700
	1) PREPARE GENERAL JOURNAL ENTRIES

Answer 1

JOURNAL ENTRIES.....

S. No.	Particulars	L.F.	Debit ($)	Credit ($)
1	Cash A/c Dr. To Capital A/c		400,000	400,000
2.	Land A/c Dr. To Cash A/c		54000	54000
3.	Cash A/c Dr. To Notes payable		25000	25000
4.	Equipment Dr To Cash To Account payable		34000	5000 29000
5.	Rent A/c Dr. To Cash		2300	2300
6.	Inventory A/c Dr. To Cash		3950	3950
7.	Advertisement Expenses A/c Dr. To Account payable		2300	2300
8.	Cash A/c Dr. Account Receivables A/c Dr. To Services		4000 42000	46000
9.	Dividend A/c Dr. To Cash		900	900
10.	Prepaid insurance A/c Dr. To Cash		7200	7200
11.	Cash A/c Dr. To Utilities		4000	4000
12.	Account Payable A/c Dr. To Cash		3600	3600
13.	Interest A/c Dr. To Cash		240	240
14.	Salaries & Wages A/c Dr.   To Cash		8100	8100
15.	Cash A/c Dr. To Account Receivables		18000	18000
16.	Cash A/c Dr.    To Advances for future services		5000	5000
17.	No Entry.............
18.	Utilities A/c Dr. To Account payable		450	450
19.	Insurance Exp A/c Dr. To Adv. Insurance		300	300
20.	Depreciation A/c Dr. To Equipment A/c		567	567
21.	Account Payable A/c Dr. To Service		2700	2700
22.	Account Payable A/c Dr To Service		24300	24300