Question

E2-21 (similar to) Question Help In December 2018, the first five transactions of Ashton's Maid Service Company have been posted to the T-accounts. Prepare the journal entries that served as the sources for the five transactions. Include an explanation for each entry. (Click the icon to view the T-accounts.) Prepare each transaction in order according to the reference number shown in the accounts provided. (Record debits first, then credits. Select the explanation on the last line of the journal entry.) Accounts and Explanation Debit Credit i Data Table X Equipment 5,500 (5) Cash Office Supplies Building (1) 58,000 39,000 (3) (2) 1,200 (3) 39,000 (4) 45,000 5,500 (5) Accounts Payable Notes Payable 1,200 (2) 45,000 (4) 45.000 (a)_ Common Stock 58,000 (1) 56.000 ( Print Done

Answer 1

Journal Entries:

	Accounts and Explanation	Debit	Credit
1	Cash	58,000
	Common stock		58,000
	[To record issuance of common stock]
2	Office supplies	1,200
	Accounts payable		1,200
	[To record purchase of office supplies on account]
3	Buildings	39,000
	Cash		39,000
	[To record purchase of buildings for cash]
4	Cash	45,000
	Notes payable		45,000
	[To record issuance of notes for cash]
5	Equipment	5,500
	Cash		5,500
	[To record purchase of equipment]