Question

 Here are selected transactions of the Escobedo Shipping Service. Record a journal entry for each transaction.

 TRANSACTIONS

 1. Gave a cash refund of $875 to a customer because of a lost package. (The customer had previously paid in cash.)

 2. Sent a check for $1,250 to the utility company to pay the monthly bill.

 3. Provided services for $8,700 on credit.

 4. Purchased new equipment for $6,400 and paid for it immediately by check.

 5. Issued a check for $5.300 to pay a creditor on account.

 6. Performed services for $16,775 in cash.

 7. Collected $6,250 from credit customers.

 8. The owner made an additional investment of $25,000 in cash.

 9. Purchased supplies for $2,350 on credit.

 10. Issued a check for $3,750 to pay the monthly rent.

Answer 1

Journal entries are as follows:

Date	Account and Explanation	Debit($)	Credit ($)
1)	Account Receivable	875
	Cash		875
	(Recorded the payment of the Account Receivable )
2)	Utility Bill Expenses	1,250
	Bank		1,250
	(Recorded the utility bill expenses)
3)	Account Receivable	8,700
	Service Revenue		8,700
	(Recorded the Service Revenue on account)
4)	Equipment	6,400
	Bank		6,400
	(Recorded the purchase of Equipment)
5)	Account Receivable	5,300
	Bank		5,300
	(Recorded the payment by check)
6)	Cash	16,775
	Service Revenue		16,775
	(Recorded the cash from the Service Revenue)
7)	Cash	6,250
	Account receivable		6,250
	(Recorded the cash from the Account receivable)
8)	Cash	25,000
	Owner's Capital		25,000
	(Recorded the additional cash from the investment)
9)	Supplies	2,350
	Account Payable		2,350
	(Recorded the purchase of Supplies)
10)	Rent Expenses	3,750
	Bank		3,750
	(Recorded the rent expenses)