Question

What would the jounal entries look like for the following events?

The following events apply to Jackson Tutoring Services Inc. for the month of January 2018, the company's first period of operations:
1	Issued common stock in exchange for $4,000 cash.
2	Borrowed $5,000 by issuing a 2-year, 10% note payable to SunTrust Bank.
3	Paid $900 for January rent.
4	Purchased supplies on account for $450 from Traveler's Supply Company.
5	Purchased equipment for $7,200 cash from DSI Computer Company. The equipment has a 3 year life and a $1,200 salvage value.
6	Purchased additional equipment from Bebo's Office Supply Co., paying cash of $1,350 and putting $1,500 on account. The equipment has a 5 year life and $450 salvage value.
7	Paid $125 for advertisements to run in the current month and $375 for ads to run in February-April.
8	Paid the January insurance premium of $225.
9	Performed services for $2,625 cash.
10	Received cash advance of $5,125 for services to be performed on a 5- month contract beginning in January.
11	Performed services and billed customers $1,500.
12	Made a $600 payment on account to Traveler's Office Supply Company .
13	Collected $1,300 from customers on account.
14	Declared and paid dividends of $1,000 cash.

Answer 1

Journal Entries

Transaction	General Journal	Debit	Credit
1	Cash	$ 4,000.00
	Common Stock		$ 4,000.00
	(Common Stock issued)
2	Cash	$ 5,000.00
	10% Notes payable		$ 5,000.00
	(Cash received against Notes payable)
3	Rent Expense	$     900.00
	Cash		$     900.00
	(Rent paid)
4	Supplies	$     450.00
	Accounts Payable-Traveller's Supply company		$     450.00
	(Supplies Purchased)
5	Equipment	$ 7,200.00
	Cash		$ 7,200.00
	(Equipment Purchased)
6	Equipment	$ 2,850.00
	Cash		$ 1,350.00
	Accounts Payable-Bebo's office supply company		$ 1,500.00
	(Equipment Purchased)
7	Prepaid Advertisement	$     375.00
	Advertisement expense	$     125.00
	Cash		$     500.00
	(Advertisement expense and advance advertisement recorded)
8	Insurance Expense	$     225.00
	Cash		$     225.00
	(Insurance premium paid)
9	Cash	$ 2,625.00
	Service Revenue		$ 2,625.00
	(Service Performed)
10	Cash	$ 5,125.00
	Unearned Service Revenue		$ 5,125.00
	(Service revenue earned in advance)
11	Cash	$ 1,500.00
	Accounts Receivable		$ 1,500.00
	(Service Performed)
12	Accounts Payable-Traveller's Supply company	$     600.00
	Cash		$     600.00
	(Paid to supplier for old balance and some cash in advance for future supplies)
13	Cash	$ 1,300.00
	Accounts Receivable		$ 1,300.00
	(Cash received against Receivable balance)
14(a)	Dividends	$ 1,000.00
	Dividends Payable		$ 1,000.00
	(Dividends payable)
14(b)	Dividends Payable	$ 1,000.00
	Cash		$ 1,000.00
	(Cash paid for Dividends)
Adjustment Entries for January
15	Depreciation Expense -Equipment	$     206.67
	Accumulated Depreciation-Equipment		$     206.67
	(Depreciation Expense Recorded)
16	Unearned Service Revenue	$ 1,025.00
	Service Revenue		$ 1,025.00
	(One month’s service rendered)

Notes
In entry no 12 . It can be seen that Accounts payable for Traveller's Supply company had only $ 450 but payment is for $600 which means payment includes some advance.
Journal entry for dividend could be made by a single entry by debiting dividend and crediting cash like given below. Dividend 1000 Cash $ 1,000.00 Straight line Method Equipment 1 A Cost $                         7,200.00 B Residual Value $                         1,200.00 C=A - B Depreciable base $                         6,000.00 D Life [in years] 3 E=C/D Annual SLM depreciation $                         2,000.00

	Book Value	Depreciation expense	Ending Book Value	Accumulated Depreciation
Depreciation For 1 Month	$                                7,200.00	$                             166.67	$                  7,033.33	$ 166.67

Straight line Method Equipment 2
A	Cost	$                         2,850.00
B	Residual Value	$                             450.00
C=A - B	Depreciable base	$                         2,400.00
D	Life [in years]	5
E=C/D	Annual SLM depreciation	$                             480.00

	Book Value	Depreciation expense	Ending Book Value	Accumulated Depreciation
Depreciation For 1 Month	$      2,850.00	$         40.00	$        2,810.00	$    40.00

Total Depreciation
Depreciation on equipment 1		$       166.67
Depreciation on equipment 2		$         40.00
		$       206.67