Question

Record each of these transactions in Journal entries and prepare the Ledger for Cash & Cash Equivalents, Accounts Receivable and Accounts Payable:

1. Jan. 1^st Frank's Pizza started the business by depositing $50,000 received from the sale of capital stock in the company bank account.
2. Jan. 22^ndPurchased a building for $36,000, paying $6,000 in cash and issuing a note payable for the remaining $30,000.
3. Jan. 25^thPurchased tools and equipment on account, $13,800.
4. Jan. 27^thSold some of the tools at a price equal to their cost, $1,800, collectible within 45 days.
5. Feb. 2^ndReceived $600 in partial collection of the account receivable from the sale of tools.
6. Feb. 7^thPaid $6,800 in partial payment of an account payable.
7. Feb. 11^thReceived $2,200 of sales revenue in cash.
8. Feb. 2oth Purchased radio advertising from RAC105 to be aired in March. The cost was $470, payable within 30 days.
1. Jan. 22^ndPurchased office equipment for $15,000 cash.
10. Jan. 26^thPerformed repair services and billed clients $2,000. The entire amount will not be collected until February.

Answer 1

Date	Account titles and explanation	Debit	Credit
1-Jan	Cash	$ 50,000.00					Cash
	Common Stock		$ 50,000.00		1-Jan	$ 50,000.00	$   6,000.00	22-Jan
					2-Feb	$      600.00	$   6,800.00	7-Feb
22-Jan	Building	$ 36,000.00			11-Feb	$   2,200.00	$ 15,000.00	22-Jan
	Cash		$   6,000.00
	Notes Payable		$ 30,000.00		bal	$ 25,000.00
25-Jan	Tools and Equipment	$ 13,800.00					Accounts Payable
	Accounts Payable		$ 13,800.00		7-Feb	$   6,800.00	$ 13,800.00	25-Jan
							$      470.00	20-Feb
27-Jan	Accounts Receivables	$   1,800.00
	Sales Revenue		$   1,800.00				$   7,470.00	bal.
2-Feb	Cash	$      600.00
	Accounts receivables		$      600.00				Accounts Receivables
					27-Jan	$   1,800.00	$      600.00	2-Feb
7-Feb	Accounts Payable	$   6,800.00			26-Jan	$   2,000.00
	Cash		$   6,800.00		bal.	$   3,200.00
11-Feb	Cash	$   2,200.00
	Sales Revenue		$   2,200.00
20-Feb	Advertisement Exp.	$      470.00
	Accounts payable		$      470.00
22-Jan	Equipment	$ 15,000.00
	Cash		$ 15,000.00
26-Jan	Accounts Receivables	$   2,000.00
	Service Revenue		$   2,000.00