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Wood Company - Journal Entries

The ledger accounts given below, with an identification number for each, are used by Wood Company. Instructions: Indicate the appropriate entries for the month of June by placing the appropriate identification number(s) in the debit and credit columns provided. Item 0 is given as an example. Write "none" if no entry is appropriate.

1.Cash 7.Salaries Payable 13.Service Revenue
2.Accounts Receivable 8.Accounts Payable 14.Equipment Expense
3.Supplies 9.Unearned Service Revenue 15.Advertising Expense
4.Prepaid Salaries 10.Notes Payable 16.Supplies Expense
5.Prepaid Advertising 11.Common Stock 17.Rent Expense
6.Equipment 12.Dividends 18.Salaries Expense
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Entry Account(s) Account(s)
No. Entry Information Debited Credited
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0. June 1 Stockholders invested $25,000 in the business. 1 11
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1. June 4 Paid a supplier $2,000 cash on account.
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2. June 5 Equipment was purchased at a cost of $5,000; a three-month, 12% note payable was signed for this amount.
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3. June 8 Received $6,000 from customers for services rendered during the week.
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4. June 10 Wood agreed to hire B. Jones as a vice-president. She will be paid at the rate of $4,000 monthly, receiving $2,000 on the 15th and 30th of each month. She will begin work June 16.
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5. June 14 Paid $400 cash to the Daily News for advertise-ments run this past week.
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6. June 16 B. Jones began work.
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7. June 19 Paid $2,000 in cash to Santo Company for June rent.
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8. June 25 Additional office supplies were purchased on account at a cost of $1,000 from Supply Company. These supplies will be used during July.
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9. June 26 Paid the Daily News $400 for an advertisement that will run the first week in July.
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10. June 27 Received $9,000 from customers for services to be rendered early in July.
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11. June 28 Billed customers $6,000 for services rendered but not collected during June.
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12. June 30 Paid $900 of dividends to stockholders.
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13. June 30 B. Jones was paid $2,000 cash for her salary.
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Solution Preview

Journal entries debt and credits

The ledger accounts given below, with an identification number for each, are used by Wood Company. Instructions: Indicate the appropriate entries for the month of June by placing the appropriate identification number(s) in the debit and credit columns provided. Item 0 is given as an example. Write "none" if no entry is appropriate.

1.Cash 7.Salaries Payable 13.Service Revenue
2.Accounts Receivable 8.Accounts Payable 14.Equipment Expense
3.Supplies 9.Unearned Service Revenue 15.Advertising Expense
4.Prepaid Salaries 10.Notes Payable 16.Supplies Expense
5.Prepaid Advertising 11.Common Stock 17.Rent Expense
6.Equipment ...

Solution Summary

This solution is comprised of a detailed explanation to indicate the appropriate entries for the month of June by placing the appropriate identification number(s) in the debit and credit columns provided.

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