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ezto.mheducation.com uD McGraw-Hill Connect eWeber M3-13 Preparing Accrual Basis Journal Entries for Business Activities [LO 3-3] Quick Cleaners, Inc. (QCI) has been in business for several years. It specializes in cleaning houses but has some small business clients as well. a. Issued $18,000 of QCI stock for cash. b. Incurred $895 of utbilities 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 jounal entries for the above transactions, which occurred during a recent month. (If no entry is required for a transactionlevent, select \"No Journal Entry Required\" in the first account field.) View transaction list Journal entry worksheet Issued $18,000 of QCI stock for cash. Record the transaction. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal 2. Determine QCI\'s preliminary net income.

Solution

Solution:

Journal Entries

Transaction

General Journal

Debit

Credit

a)

Cash

$18,000

Common Stock

$18,000

(Issued common stock for cash recorded)

b)

Utility Expense

$895

Accounts Payable

$895

(Recorded Utilities expenses for the month)

c)

Salary and Wages Expense

$3,100

Cash

$3,100

(Wages paid in cash for the month recorded)

d)

Accounts Receivable

$4,500

Service Revenue

$4,500

(Recorded cleaning services performed on account)

e)

Repair Expense

Cash

(Recorded repair work done on equipment)

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Transaction	General Journal	Debit	Credit
a)	Cash	$18,000
	Common Stock		$18,000
	(Issued common stock for cash recorded)
b)	Utility Expense	$895
	Accounts Payable		$895
	(Recorded Utilities expenses for the month)
c)	Salary and Wages Expense	$3,100
	Cash		$3,100
	(Wages paid in cash for the month recorded)
d)	Accounts Receivable	$4,500
	Service Revenue		$4,500
	(Recorded cleaning services performed on account)
e)	Repair Expense
	Cash
	(Recorded repair work done on equipment)