Question

Selected activity of Mason Consulting Services follow.

DATE			TRANSACTIONS
2019
Sept.		1	Zack Mason invested $55,000 in cash to start the firm.
		4	Purchased office equipment for $6,000 on credit from Den, Inc.; received Invoice 9823, payable in 30 days.
		16	Purchased an automobile that will be used to visit clients; issued Check 1001 for $14,000 in full payment.
		20	Purchased supplies for $470; paid immediately with Check 1002.
		23	Returned damaged supplies for a cash refund of $145.
		30	Issued Check 1003 for $3,700 to Den, Inc., as payment on account for Invoice 9823.
		30	Withdrew $2,500 in cash for personal expenses.
		30	Issued Check 1004 for $1,450 to pay the rent for September.
		30	Performed services for $2,500 in cash.
		30	Paid $410 for monthly telephone bill, Check 1005.

Prepare journal entries for the transactions incurred during September of 2019.

Answer 1

Answer
Journal entries:
Date	account title	debit	credit
01-Sep	Cash	$      55,000
	Zack Mason Capital		$      55,000
	(To record owner invested to start firm)
04-Sep	Equipment	$        6,000
	Accounts Payable		$        6,000
	(To record purchase of equipment on credit)
16-Sep	Automobile	14000
	Cash		$      14,000
	(To record purchased automobile)
20-Sep	Supplies	$           470
	Cash		$           470
	(To record purchased supplies, issued ck. 1002)
23-Sep	Cash	$           145
	Supplies		$           145
	(To record return of damaged supplies)
30-Sep	Accounts Payable	$        3,700
	Cash		$        3,700
	(To record payment of cash on account)
30-Sep	Zack Mason Drawings	$        2,500
	Cash		$        2,500
	( To record withdrew )
30-Sep	Rent Expense	$        1,450
	Cash		$        1,450
	(To record payment of rent)
30-Sep	Cash	$        2,500
	Fees Income		$        2,500
	(To record performed service)
30-Sep	Telephone Expense	$           410
	Cash		$           410
	(To record telephone expense paid in cash)