Answer to Question #171237 in Accounting for Tayyaba

Question

The Zuni Co. has the following accounts in its ledger: Cash; Accounts Receivable;

Supplies; Office Equipment; Accounts Payable; Gayle McCall, Capital; Gayle McCall,

Drawing; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Mis￾cellaneous Expense.

Journalize the following selected transactions for August 2005 in a two-column

journal. Journal entry explanations may be omitted.

August 1. Paid rent for the month, $1,500.

2. Paid advertising expense, $700.

4. Paid cash for supplies, $1,050.

6. Purchased office equipment on account, $7,500.

8. Received cash from customers on account, $3,600.

12. Paid creditor on account, $1,150.

20. Withdrew cash for personal use, $1,000.

25. Paid cash for repairs to office equipment, $500.

30. Paid telephone bill for the month, $195.

31. Fees earned and billed to customers for the month, $10,150.

31. Paid electricity bill for the month, $380

Answer 1

1 Debit payments to the landlord credit current account - 1500

2. Debit settlements with the advertiser credit settlement account - 700

4. Debit consumable materials credit cash register

6. Debit office equipment credit payments with suppliers - 7 500

8. Debit current account credit cash register - 3600

12. Debit settlements with lenders credit settlement account - 1150

20. Debit settlements with accountable persons credit cashier - 1000

25. Debit payments with the repair company credit cashier - 500

30. Debit payments with the phone company credit checking account - 195

31. Debit payments to customers credit sales - 10 150

31. Debit payments to electricity suppliers credit current account - 380