Question

In December 2018, the first five transactions of Acker Small Engine Repair 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 Data Table Building 39,000 Equipment 3,200 (3) (5) Cash Office Supplies (1) 51,000 39,000 (3) (2) 600 (4) 46,000 3,200 (5) Accounts Payable 600 (2) Accounts and Explanation Debit Credit Notes Payable Common Stock 46,000 (4) 51,000 (1) Print Done

Answer 1

Answer

	Accounts and Explanation	Debit	Credit
1	Cash account                                                                        Dr	$        51,000
	To Common Stock account		$        51,000
	( Being issue of equity shares of $51,0000
	Accounts and Explanation	Debit	Credit
2	Office Supplies account                                                   Dr	$              600
	To Accounts Payable		$              600
	(Being office supplies purchased on credit)
	Accounts and Explanation	Debit	Credit
3	Building account                                                                 Dr	$        39,000
	To Cash account		$        39,000
	(Being cost of building purchased )
	Accounts and Explanation	Debit	Credit
4	Cash account                                                                         Dr	$        46,000
	To Notes Payable account		$        46,000
	(Being amount borrowed through notes)
	Accounts and Explanation	Debit	Credit
5	Equipment account                                                            Dr	$          3,200
	To cash		$          3,200
	(Being cost of equipment purchased)