Answer to Question #216332 in Accounting for zuby

Question

Exercise B Prepare the journal entry required for each of the following transactions:

a. Cash was received for services performed for customers, USD 1,200.

b. Services were performed for customers on account, USD 4,200.

Exercise C Prepare the journal entry required for each of the following transactions:

a. Capital stock was issued for USD 100,000.

b. Purchased machinery for cash, USD 30,000.

Exercise D Prepare the journal entry required for each of the following transactions:

a. Capital stock was issued for USD 200,000 cash.

b. A USD 30,000 loan was arranged with a bank. The bank increased the company's checking account by USD

30,000 after management of the company signed a written promise to return the USD 30,000 in 30 days.

c. Cash was received for services performed for customers, USD 700.

d. Services were performed for customers on account, USD 1,200.

Answer 1

Exercise B

Particulars Debit  $ Credit  $

a Cash $ 1200

          Service Revenue $ 1200

b Accounts Receivable $ 4200

           Service revenue $ 4200

Exercise C

Particulars Debit  $ Credit  $

a Cash $100000

        Capital Stock $100000

b Equipment $ 30000

        Cash $ 30000

Exercise D

Particulars Debit  $ Credit  $

a Cash $200000

        Capital Stock $200000

b Cash $30000

         Accounts receivable $ 30000

b Accounts Payable $30000

           Cash $ 30000

c Cash $7000

        Service Revenue $ 7000

d Cash  $1200

        Accounts receivable $1200