Answer to Question #216129 in Accounting for zuby

Question

a. W works signs a note at the bank and is given $10,000 cash.

b. Leon deposits $2,000 of his own money into Webworks’s checking account.

c. W works purchases a new computer and additional equipment for $3,000.

d. W works purchases supplies worth $200 on account that should last W works two months.

e. W works hires Nancy Po to assist with admin tasks. She will charge $100 per Web site for her assistance.

f. W works begins working on his first two Web sites, one for Juan Sanchez, a friend of his dad’s and the other for Pauline Smith, a local businesswoman.

g. W works completes the site for Mr. Sanchez and sends him a bill for $600.

h. W works completes the site for Ms. Smith and sends her a bill for $450.

i. W works collects $600 in cash from Mr. Sanchez.

j. W works pays Nancy $100 for her work on Mr. Sanchez’s Web site.

k. W works receives $500 in advance to work on a Web site t. Work on the site will not begin until July.

l. W works pays taxes of $200 in cash.

A. Prepare journal entries

Answer 1

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