Question

Carla Vista Computer Corporation had the following opening account balances at the end of April: Cash $ 4,700; Accounts Receivable $6,400; Accounts Payable $ 1,900; Common Shares $ 4,800; and Retained Earnings $ 4,400. It entered into the following transactions during the month of May:

1.		Purchased equipment on account for $ 8,300.
2.		Paid $ 1,600 for rent for the month of May.
3.		Provided computer services for $ 3,400 on account.
4.		Paid Ontario Hydro $ 200 cash for utilities used in May.
5.		Borrowed $ 19,900 from the bank.
6.		Paid supplier for equipment purchased in transaction 1.
7.		Purchased a one-year accident insurance policy for $ 600 cash.
8.		Received $ 2,700 cash in partial payment of the account owed in transaction 3.
9.		Declared and paid $ 500 of dividends to shareholders.
10.		Paid income tax of $ 260 for the month.

Journalize the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.	Account Titles and Explanation	Debit	Credit
1.	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
2.	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
3.	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
4.	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
5.	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
6.	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
7.	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
8.	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
9.	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
10.	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount

List of Accounts

Answer 1

Journal Entries

No	Account Titles and Explanation	Debit	Credit
1	Equipment	$    8,300.00
	Accounts Payable		$    8,300.00
	(equipment purchased on account)
2	Rent expense	$    1,600.00
	Cash		$    1,600.00
	(Rent expense paid for may)
3	Accounts Receivable	$    3,400.00
	Service revenue		$    3,400.00
	(Service revenue earned)
4	Utilities expense	$        200.00
	Cash		$        200.00
	(utilities expense paid)
5	Cash	$ 19,900.00
	Notes payable		$ 19,900.00
	(borrowed money from bank)
6	Accounts Payable	$    8,300.00
	Cash		$    8,300.00
	(paid for equipment purchased in earlier on account)
7	Prepaid insurance	$        600.00
	Cash		$        600.00
	(insurance policy purchased)
8	Cash	$    2,700.00
	Accounts Receivable		$    2,700.00
	(received against debit balance of receivable)
9	Dividends	$        500.00
	Cash		$        500.00
	(dividends declared and paid)
10	Income tax expense	$        260.00
	Cash		$        260.00
	(income tax expense paid)

Notes

Insurance is debited to prepaid insurance since insurance term is not yet expired.

It is assumed that loan from bank is against Notes payable.

Student is requested to make necessary adjustments regarding the title of accounts since list of accounts is not provided.