Question

On August 1st The Bus company has a Cash balance of $200. During August, the company performed $2000 in services on account and collected $900 from customers for services performed. A total of $1,300 was received on the sale of common stock, purchased supplies on account of $500, paid Insurance of $600, and paid salaries for $800. Dividends of $400 paid.

What are the journal entries and balances in the T-accounts? Please explain any details please.

Answer 1

Journal entries in the month of August

Balances in T-Accounts

Transaction

Account Titles

Debit

Credit

Cash

Service Revenue

a

Accounts Receivables

$2,000.00

Beg.bal.

$200.00

$600.00

e

$2,000.00

a

Service Revenue

$2,000.00

b

$900.00

$800.00

f

c

$1,300.00

$400.00

g

b

Cash

$900.00

End.bal.

$600.00

End.bal.

$2,000.00

Accounts Receivables

$900.00

Accounts Receivables

Common stock

c

Cash

$1,300.00

a

$2,000.00

$900.00

b

$1,300.00

c

Common stock

$1,300.00

d

Supplies

$500.00

End.bal.

$1,100.00

End.bal.

$1,300.00

Accounts Payable

$500.00

Accounts Payable

Supplies

e

Insurance Expense

$600.00

$500.00

d

d

$500.00

Cash

$600.00

f

Salaries Expense

$800.00

End.bal.

$500.00

End.bal.

$500.00

Cash

$800.00

Insurance Expense

Salaries Expense

g

Dividends

$400.00

e

$600.00

f

$800.00

Cash

$400.00

End.bal.

$600.00

End.bal.

$800.00

Dividends

g

$400.00

End.bal.

$400.00