Question

Financial Accounting, Seventh Canadian Edition by Kimmel, Weygandt, Kieso, Trenholm, Help System Announcements Exercise 3-6 Selected transactions for Ivanhoe Utd. during its first month of operations are presented below: Mar. 2 Issued common shares for $11,900 cash. 4 Purchased used car for $1,100 cash and $9.900 on account, for use in the business, 10 Billed customers $2,300 for services performed. 13 Paid $250 cash to advertise business opening. 25 Received $920 cash from customers billed on March 10. 27 Paid amount owing for used car purchased on March 4. 30 Received $730 cash from a customer for services to be performed in April, 31 Declared and paid $330 of dividends to shareholders. Journalize the transactions. (Credit account titles are automatically madented when the amount Entry for the account titles and enter for the amounts. Record journal entries the order Date Account Titles and Explanation Debit Credit

Answer 1

SOLUTION:

Date	Particulars	Debit	Credit
Mar-02	Cash	11,900
	Common Stock		11,900
Mar-04	Vehicles	11,000
	Cash		1,100
	Account payable		9,900
Mar-10	Accounts receivable	2,300
	Service revenue		2,300
Mar-13	Advertising expense	250
	Cash		250
Mar-25	Cash	920
	Accounts receivable		920
Mar-27	Account payable	9,900
	Cash		9,900
Mar-30	Cash	730
	Unearned revenue		730
Mar-31	Cash	330
	Dividends		330