Question

Issued a check for $1,010 to pay the monthly rent. Issued a $1,300 check to pay a creditor on account. Purchased new equipment for $390 and paid $110 immediately by check with the remainder due in 30 days. Provided services on credit in the amount of $860. Performed services for cash in the amount of $1,320. The owner made an additional investment of $5,600 in cash and $1,050 in equipment. Purchased $190 worth of supplies on credit. Sent a $105 check to the utility company to pay the monthly bill. Collected $650 from credit customers. Determine the accounts and amounts to be debited and credited for the above transactions for Folk Furniture Repair.

Answer 1

Issued a check for $1,010 to pay the monthly rent

Account Debit Credit

Rent Expense $1,010

Bank $1,1010

Issued a $1,300 check to pay a creditor on account.

Account Debit Credit

Creditor $1,300

Bank $1,300

Purchased new equipment for $390 and paid $110 immediately by check with the remainder due in 30 days.

Account Debit Credit

Equipment $390

Bank $110

Accounts Payable $280

Provided services on credit in the amount of $860.

Account Debit Credit

Service Revenue $860

Accounts Receivable $860

Performed services for cash in the amount of $1,320.

Account Debit Credit

Service Revenue $1,320

Cash $1,320

The owner made an additional investment of $5,600 in cash and $1,050 in equipment.

Account Debit Credit

Cash $5,600

Equipment $1,050

Capital $6,650

Purchased $190 worth of supplies on credit.

Account Debit Credit

Supplies $190

Accounts Payable $190

Sent a $105 check to the utility company to pay the monthly bill.

Account Debit Credit

Utilities Expense $105

Bank $105

Collected $650 from credit customers.

Account Debit Credit

Cash $650

Accounts Receivable $650