Question

The company paid $2,200 cash for the premium on an 18-month insurance policy. Note: Enter debits before credits Tranasaction Account Title Debit Credit d

Answer 1

Journal Entries Date Account Title and Explaination Post. Ref. Debit $ Credit $ d $ 2,200.00 2,200.00 Prepaid Insurance Cash (To record payment of 18 months insurance policy premium) $ 9,700.00 Cash Engineering Fees Earned (To record cash received for service preformed) $ 9,700.00 f $ 34,000.00 Drafting Equipment Cash Notes Payable record purchase of drafting equipment by paying cash and signing Note Payable) 11,200.00 22,800.00 $ $ 19,000.00 Accounts Receivable Engineering Fees Earned (To record Service provided on account) $ 19,000.00

h $ Office Equipment Accounts Payable 1,500.00 S 1,500.00 i $ 21,000.00 (To record Office Equipment purchased on account) Accounts Receivable Engineering Fees Earned |(To record Service performed on account) $ 21,000.00 j $ 1,467.00 Equipment Rental Expense Equipment Rental Payable (To record Equipment rental Expense) $ 1,467.00 k $ 6,000.00 Cash Accounts Receivable (To record partial collection of receivables) $ 6,000.00

1 $ 1,300.00 Wages Expense Cash (To record payment of Wages Expense) $ 1,300.00 m S 1,500.00 Accounts Payable Cash (To record payment of payables) $ 1,500.00 n S 1,005.00 Repairs Expense Cash (To record maintenance of Drafting Equipment) $ 1,005.00 o $ 10,770.00 Dividends Cash (To record payment of Dividends) $ 10,770.00 $ р 1,300.00 Wages Expense Cash (To record payment of Wages Expense) $ 1,300.00 q $ 3,300.00 Advertising Expense Cash (To record payment Advertising Expense) $ 3,300.00