Jill Wahpoosywan invested 85000 in cash and office equipment

Jill Wahpoosywan invested $85,000 in cash and office equipment that had a fair value of $58,000 in the business.

  

Prepare General Journal entries to record the transactions. (If no entry is required for a transaction/event, select \"No journal entry required\" in the first account field).

May	1	Jill Wahpoosywan invested $85,000 in cash and office equipment that had a fair value of $58,000 in the business.
	1	Prepaid $17,400 cash for three months’ rent for an office.
	2	Made credit purchases of office equipment for $29,000 and office supplies for $5,800.
	6	Completed services for a client and immediately received $9,000 cash.
	9	Completed a $17,000 project for the Chicago Blackhawks who will pay within 30 days.
	10	Paid half of the account payable created on May 2.
	19	Paid $8,500 cash for the annual premium on an insurance policy.
	22	Received $13,800 as partial payment for the work completed on May 9.
	25	Completed work for the Washington Redskins for $6,280 on credit.
	25	Paid wages for May totalling $39,000.
	31	Wahpoosywan withdrew $6,000 cash from the business for personal use.
	31	Purchased $2,100 of additional office supplies on credit.
	31	Paid $1,500 for the month’s utility bill.

Solution

1-

Journal Entries

2-

Ledger Accounts

date

Explanation

debit

credit

explanation

debit

explanation

credit

1-May

cash

85000

office equipment

office equipment

58000

capital

58000

balance

87000

capital

143000

accounts payable

29000

1-May

prepaid rent

17400

capital

cash

balance

143000

cash

85000

office equipment

58000

2-May

office equipment

29000

office supplies

5800

cash

accounts payable

34800

capital

85000

prepaid rent

17400

revenue from service fee

9000

accounts payable

17400

6-May

cash

9000

accounts receivables

13800

prepaid insurance

8500

revenue from service fee

9000

wages

39000

drawings

6000

9-May

accounts receivables

17000

utility expense

1500

revenue from fee

17000

balance

18000

total

107800

total

107800

10-May

accounts payable

17400

cash

17400

19-May

prepaid insurance

8500

cash

8500

prepaid rent

cash

17400

balance

17400

22-May

cash

13800

accounts receivables

13800

office supplies

Accounts payable

5800

balance

7900

25-May

accounts receivables

6280

accounts payable

2100

revenue from fee

6280

accounts payable

cash

17400

office equipment

29000

25-May

wages

39000

balance

19500

office supplies

5800

cash

39000

office supplies

2100

31-May

drawings

6000

total

36900

total

36900

cash

6000

revenue from service fee

balance

32280

cash

9000

31-May

office supplies

2100

accounts receivables

17000

accounts payable

2100

accounts receivables

6280

31-May

utility expense

1500

accounts receivables

cash

1500

revenue from service fee

17000

cash

13800

revenue from fee

6280

balance

9480

Trial balance

total

23280

total

23280

Explanation

debit

credit

prepaid insurance

office equipment

87000

cash

8500

balance

8500

capital

143000

cash

18000

wages expense

prepaid rent

17400

cash

39000

balance

39000

office supplies

7900

accounts payable

19500

drawings

revenue from service fee

32280

cash

6000

balance

6000

accounts receivables

9480

prepaid insurance

8500

utility expense

wages expense

39000

cash

1500

balance

1500

drawings

6000

utility expense

1500

total

194780

194780

1-	Journal Entries				2-	Ledger Accounts
	date	Explanation	debit	credit		explanation	debit	explanation	credit
	1-May	cash	85000				office equipment
		office equipment	58000			capital	58000	balance	87000
		capital		143000		accounts payable	29000
	1-May	prepaid rent	17400				capital
		cash				balance	143000	cash	85000
								office equipment	58000
	2-May	office equipment	29000
		office supplies	5800				cash
		accounts payable		34800		capital	85000	prepaid rent	17400
						revenue from service fee	9000	accounts payable	17400
	6-May	cash	9000			accounts receivables	13800	prepaid insurance	8500
		revenue from service fee		9000				wages	39000
								drawings	6000
	9-May	accounts receivables	17000					utility expense	1500
		revenue from fee		17000				balance	18000
						total	107800	total	107800
	10-May	accounts payable	17400
		cash		17400
	19-May	prepaid insurance	8500
		cash		8500			prepaid rent
						cash	17400	balance	17400
	22-May	cash	13800
		accounts receivables		13800			office supplies
						Accounts payable	5800	balance	7900
	25-May	accounts receivables	6280			accounts payable	2100
		revenue from fee		6280			accounts payable
						cash	17400	office equipment	29000
	25-May	wages	39000			balance	19500	office supplies	5800
		cash		39000				office supplies	2100
	31-May	drawings	6000			total	36900	total	36900
		cash		6000			revenue from service fee
						balance	32280	cash	9000
	31-May	office supplies	2100					accounts receivables	17000
		accounts payable		2100				accounts receivables	6280
	31-May	utility expense	1500				accounts receivables
		cash		1500		revenue from service fee	17000	cash	13800
						revenue from fee	6280	balance	9480
	Trial balance					total	23280	total	23280
	Explanation	debit	credit				prepaid insurance
	office equipment	87000				cash	8500	balance	8500
	capital		143000
	cash	18000					wages expense
	prepaid rent	17400				cash	39000	balance	39000
	office supplies	7900
	accounts payable		19500				drawings
	revenue from service fee		32280			cash	6000	balance	6000
	accounts receivables	9480
	prepaid insurance	8500					utility expense
	wages expense	39000				cash	1500	balance	1500
	drawings	6000
	utility expense	1500
	total	194780	194780