Question

Quality Appliance Service is a service enterprise. the account balances for Quality Appliance Service as of the current date are as follows:

Cash- 248,658.10

Accounts recievable- 217,700.00

Supplies and parts- 192,050.00

Prepaid insurance- 34,400.00

Land- 82,000.00

Building- 142,000.00

Accumulated depreciation- building 19,200

Vehicles- 66,000.00

Accumulated depreciation- vehicles 20,000

equipmment- 27,800

Accumulated depreciation- Equipment 8,800.00

Accounts payable- 68,395.00

Wages and salaries payable- 6,900.00

Payroll taxes payable- 14,001.50

I.M. serviceman, capital- 817,450.00

I.M. serviceman, drawing- 26,000

Service fees earned- 337,600

Wages and salaries expense- 96,845.00

Payroll tax expense- 7,364.80

Supplies and parts expense- 70,500.00

Insurance Expense- 11,467.00

Telephone expense- 1,548.00

Utilities expense- 14,739.00

Depreciation expense- Vehicles 1,250.00

Depreciation expense- Equipment 550.00

Depreciation expense- Building 1,200.00

Repair expense- 44,200.60

Miscellaneous expense- 6,074.00

Debit Total- 1,292,346.50. Credit total- 1,292, 346.50

During the following month, the following transactions were completed:

1. Recieved a $46,000 check from Hotpoint Sales on account.

2. Recieved a $285 cash from a customer for appliance repair services provided.

3. The customer above returned the appliance that we repaired and stated that the repair work was not satisfactory. we gave them a cash refund of $200.

4. Purchased $7,246 of parts and supplies from Motor and Transmission Supply on account.

5. Paid the telephone bill $250.

6. Sent a check for $11,365 to Belt and Hose Supply on account.

7. Billed Whirlpool Sales $4,365 for appliance repair services provided on account.

8. A portion of the supplies purchased from Motor and Transmission Supply did not meet manufacturer specifications for appliance replacement parts. we returned these parts for a credit on our account of $2,060.

9. Recieved a $23,000 check from Kenmore Sales on account.

10. Sent a check for $14,780 to Gasket and Washer Supply on account.

11. Paid the electric bill for the current month of $432.

12. Purchased $386 of parts and supplies on account from Gasket and Washer Supply.

13. Billed Maytag Sales for $1,400 for appliance repair services provided on account.

Prepared payroll checks for the following employees:

Betty J. Jones- Salary of 1307.69

John M. Doe- 80 hours regular time and 10 hours overtime (regular rate $12 per hour, OT 1.5)

Sam R. Public- 80 hours regular time and 4 hours overtime (regular rate $10 per hour, OT 1.5)

Instructions

1. Journalize the 13 transactions using the current rules of debits and credits. You will use the trial balance on the 1st page for your charts of accounts.

Answer 1

Transaction	Accounts and Explanation	Debit	Credit
1	Cash	46000
	Accounts receivable		46000
	(To record collection on account)
2	Cash	285
	Service fees earned		285
	(To record service fees earned in cash)
3	Service fees earned	200
	Cash		200
	(To record fees refunded)
4	Supplies and parts	7246
	Accounts payable		7246
	(To record parts and supplies purchased on account)
5	Telephone expense	250
	Cash		250
	(To record payment of telephone bill)
6	Accounts payable	11365
	Cash		11365
	(To record payment on account)
7	Accounts receivable	4365
	Service fees earned		4365
	(To record fees earned on account)
8	Accounts payable	2060
	Supplies and parts		2060
	(To record purchase returns)
9	Cash	23000
	Accounts receivable		23000
	(To record collection on account)
10	Accounts payable	14780
	Cash		14780
	(To record payment on account)
11	Utilities expense	432
	Cash		4320
	(To record payment of electric bill)
12	Supplies and parts	386
	Accounts payable		386
	(To record parts and supplies purchased on account)
13	Accounts receivable	1400
	Service fees earned		1400
	(To record fees earned on account)
	Wages and salaries expense	3307.69
	Cash [1307.69+(80 x $12)+(10 x $18)+(80 x $10)+(4 x $15)]		3307.69
	(To record payment of salaries and wages)