Question

Recording Transactions in Journal Entries and T-Accounts Schrand Aerobics, Inc., rents studio space (including a sound system) and specializes in offering aerobics classes. On January 1, 2015, its beginning account balances are as follows: Cash, $2,500; Accounts Receivable, $2,600; Equipment, $0; Notes Payable, $1,250; Accounts Payable, $500; Common Stock, $2,750; Retained Earnings, $600; Services Revenue, $0; Rent Expense, $0; Advertising Expense, $0; Wages Expense, $0; Utilities Expense, $0; Interest Expense, $0. The following transactions occurred during January. (1) Paid $300 cash toward accounts payable. (2) Paid $1,800 cash for January rent. (3) Billed clients $5,750 for January classes. (4) Received $250 invoice from supplier for T-shirts given to January class members as an advertising promotion. (5) Collected $5,000 cash from clients previously billed for services rendered. (6) Paid $1,200 cash for employee wages. (7) Received $340 invoice for January utilities expense. (8) Paid $10 cash to bank as January interest on notes payable. (9) Declared and paid $450 cash dividend to stockholders. (10) Paid $2,000 cash on January 31 to purchase sound equipment to replace the rental system.

Answer 1

	Schrand Aerobics Inc.
	General,Journal	Debit	Credit
1)	Accounts Payable	$           300.00
	To Cash		$               300.00
	(Being amount of cash paid )
2)	Rent Expenses	$        1,800.00
	To Cash		$             1,800.00
	Being amount of Rent Expense)
3)	Accounts receivable	$        5,750.00
	To Service Revenue		$             5,750.00
	(Being amount of Service Revenue)
4)	Advertising Expense	$           250.00
	To Accounts Payable		$               250.00
	(Being amount of Advertisement Expense)
5)	Cash	$        5,000.00
	To Accounts Receivable		$             5,000.00
	(Being amount of Accounts Receivable)
6)	Wages Expense	$        1,200.00
	To Cash		$             1,200.00
	(Being amount of Wages Expense)
7)	Utilities Expense	$           340.00
	To Accounts Payable		$               340.00
	(Being amount of Utilities Expense)
8)	Interest Expense	$             10.00
	To Cash		$                 10.00
	(Being amount of Interest Expense paid on Notes Payable)
9)	Retained Earnings	$           450.00
	To Cash		$               450.00
	(Being amount of declared and paid cash dividend)
10)	Equipment	$        2,000.00
	To Cash		$             2,000.00
	(Being amount of Equipment Purchased)
2)	Cash
	Particular	Debit	Particular	Credit
	To Balance B/d	$        2,500.00	By Accounts Payable	$          300.00
	To Accounts Receivable	$        5,000.00	By Rent Expense	$       1,800.00
			By Wages Expense	$       1,200.00
			By Interest Expense	$           10.00
			By Retained Earnings	$          450.00
			By Equipment	$       2,000.00
			By Balance C/d	$       1,740.00
	Total	$        7,500.00	Total	$       5,760.00
	Accounts Receivable
	Particular	Debit	Particular	Credit
	To Balance B/d	$        2,600.00	By Cash	$       5,000.00
	To Service Revenue	$        5,750.00	By Balance c/d	$       3,350.00
	Total	$        8,350.00	Total	$       8,350.00
	Accounts Payable
	Particular	Debit	Particular	Credit
	To Cash	$           300.00	By Balance B/d	$          500.00
	To Balance C/d	$           790.00	By Advertisement Expense	$          250.00
			By Utilities Expense	$          340.00
	Total	$        1,090.00	Total	$       1,090.00
	Service Revenue
	Particular	Debit	Particular	Credit
	To Balance C/d	$        5,750.00	By Accounts Receivable	$       5,750.00
	Total	$        5,750.00	Total	$       5,750.00
	Rent Expense
	Particular	Debit	Particular	Credit
	To Cash	$        1,800.00	By Balance C/d	$       1,800.00
	Total	$        1,800.00	Total	$       1,800.00
	Advertisement Expense
	Particular	Debit	Particular	Credit
	To Cash	$           250.00	By Balalnce c/d	$          250.00
	Total	$           250.00	Total	$          250.00
	Wages Expense
	Particular	Debit	Particular	Credit
	To Cash	$        1,200.00	By Balance C/d	$       1,200.00
		$        1,200.00	Total	$       1,200.00
	Utilities Expense
	Particular	Debit	Particular	Credit
	To Accounts Payable	$           340.00	By Balance C/d	$          340.00
		$           340.00	Total	$          340.00
	Retained Earnings
	Particular	Debit	Particular	Credit
	To Cash	$           450.00	By Balance b/d	$          600.00
	To Balance C/d	$           150.00
		$           600.00	Total	$          600.00
	Interest Expense
	Particular	Debit	Particular	Credit
	To Cash	$             10.00	By Balance C/d	$           10.00
		$             10.00	Total	$           10.00
	Notes Payable
	Particular	Debit	Particular	Credit
	To Balance C/d	$        1,250.00	By Balance b/d	$       1,250.00
		$        1,250.00	Total	$       1,250.00
	Common Stock
	Particular	Debit	Particular	Credit
	To Balance C/d	$        2,750.00	By Balance b/d	$       2,750.00
		$        2,750.00	Total	$       2,750.00
	Equipment
	Particular	Debit	Particular	Credit
	To Cash	$        2,000.00	By Balance C/d	$       2,000.00
		$        2,000.00	Total	$       2,000.00