Question

* Prepare the appropriate journal entries associated with the below transactions.

Transactions during January 2020:

1. On January 1, 2020, the owner of ACC invested $10,000.00 cash in the company.

2. An invoice was received from ACC's insurance provider on January 15, 2020, for casualty insurance coverage in the amount of $2,400.00 for the period January 1, through December 31, 2020.

3. Employees earned salary and wages in January of $6,500.00 which was paid on February 1, 2020.

4. The insurance premium described in transaction 2 was paid on January 31, 2020.

5. Office expense for the month of January paid in cash was $1,500.00 6. Record insurance expenses for the month of January. 7. January's service revenue for the Company is $21,000.00. All revenues are recorded as "on account."

Answer 1

Journal entries :-

S.no.	Account Title and Explanation	Debit	Credit
1.)	Cash	10,000
	Capital		10,000
	(To record capital invested)
2.)	Prepaid insurance	2,400
	Insurance payable		2,400
	(To record insurance payable)
3.)	Salaries and wages expense	6,500
	Salaries and wages payable		6,500
	(To record Salaries and wages expense)
4.)	Insurance payable	2,400
	Cash		2,400
	(To record Insurance paid)
5.)	Office expenses	1,500
	Cash		1,500
	(To record office expenses paid in cash)
6.)	Insurance Expense (2,400/12)	200
	Prepaid insurance		200
	(To record January insurance Expense)
7.)	Revenue	21,000
	Account receivable		21,000
	(To record Revenue on account)