Question

Elatrip Company provides package tours for customers. The following transactions were completed by the company during September 2019.

Sept 1   Shareholders invested $ 500,000 into the business in exchange for ordinary shares.

Sept 2   Purchased $600 worth of office supplies for cash.

Sept 4   Purchased furniture from Damro Company for $5,000 and issued a 90 day, 8% promissory note.

Sept 7   Purchased equipment for $800 and postponed payment until September 28.

Sept 11 Earned revenue of $4,000, of which $3,000 is collected in cash and the balance is due on September 18.

Sept 13 Purchased a commuter van for $100,000. Elatrip paid $60,000 in cash and signed a 6 month, 7% promissory note for the balance due.

Sept 15 Company received $2,000 cash in advance for the service to be rendered on October 5.

Sept 16 Paid $6,000 rent for 2 months. (October and November 2017)

Sept 18 Collected the balance due from September 11.

Sept 20 Performed services for $ 5,000 and received a one month, 9% promissory note from customer.

Sept 25 Incurred $1,000 for repair and maintenance cost and the company issued a check for the amount.

Sept 27 A $800 bill was received for electricity and water expense for the month. The entire amount is due on October 1.

Sept 28 Company paid the balance due from September 7.

Sept 30 Paid $2,000 for employees’ salaries.

The company uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 113 Notes receivable, No. 124 Office supplies, 136 Prepaid rent, No.140 Furniture, No 145 Equipment, No 156 Commuter van, No 201 Accounts payable, No 211 Notes payable, No 220 Unearned service revenue, No 311 Share capital- ordinary, No 400 Service revenue, No 726 Repair and maintenance expense, No 735 Utilities expense, No 738 Salaries expense.

1)JOURNALIZE

Answer 1