Question 5 of 8 5 187 points M313 Preparing Accrual Basis Jo

Question 5 (of 8) 5. 1.87 points M3-13 Preparing Accrual Basis Journal Entries for Business Activities [LO 3-3] aick Cleaners, h·(QC) has been in business for several years. It specializes in deaning houses but has some small business cients as well. a Issued $18,000 of CCI stock for cash. b. Incurred $895 of ubilities costs this month and will pay them next month. c. Paid wages for the current month, totaling $3,100 d. Performed cleaning services on account worth $4,500 e. Some of Quick Cleaners\' equipment was repaired at a total cost of $302. The company paid the full amount at the time the repair work was done 1. Prepare joumal entries for the above transactions, which occured during a required for a transactionievent, select \"No Journal Entry Required\" of no entry is in the fidst account field.) View transaction listView journal entry worksheet a. No Transaction Recorded MacBook Pro esc 2 4

Solution

Answer

Dr. $

Cr. $

a.

Cash

18,000

Common Stock

18,000

b.

Utilities Expense

895

Accounts Payable

895

c.

Wages expense

3,100

Cash

3,100

d.

Accounts Receivable

4,500

Service Revenue

4,500

e.

Repairs Expense

302

Cash

302

2.

Preliminary Income = Service Revenue – Utilities Expense – Wages Expense – Repairs Expense

= 4,500 – 895 – 3,100 – 302

Preliminary Income = $203

		Dr. $	Cr. $
a.	Cash	18,000
	Common Stock		18,000
b.	Utilities Expense	895
	Accounts Payable		895
c.	Wages expense	3,100
	Cash		3,100
d.	Accounts Receivable	4,500
	Service Revenue		4,500
e.	Repairs Expense	302
	Cash		302