Question

Terrapin Company engages in the following external transactions for November.

1. Purchase equipment in exchange for cash of $21,500.

2. Provide services to customers and receive cash of $6,000.

3. Pay the current month's rent of $1,700.

4. Purchase office supplies on account for $1,500.

5. Pay employee salaries of $1,700 for the current month.

Record the transactions. Terrapin uses the following accounts: Cash, Supplies, Equipment, Accounts Payable, Service Revenue, Rent Expense, and Salaries Expense.

Answer 1

Transaction	General Journal	Debit	Credit
1.	Equipment	$21,500
	.. Cash		$21,500
	(To record the purchase of equipment)
2.	Cash	$6,000
	... Service Revenue		$6,000
	(To record the service provide to the customer)
3.	Rent expense	$1,700
	... Cash		$1,700
	(To record the payment of rent)
4.	Supplies	$1,500
	Accounts payable		$1,500
	(To record the purchase of Office supplies)
5.	Salaries expense	$1,700
	... Cash		$1,700
	(To record the salaries expense)