Woodcross LLC had the following events occur during the month of July.
1. Received $40,000 from investors for contributed capital
2. Borrowed $15,500 from bank
3. Paid $4,000 in rent
4. Made sale on account for $12,500
5. Made cash sales to customers totaling $29,700
6. Repaid part of bank loan for $6,000
7. Purchased new equipment for $5,000
8. Paid $13,000 for wages
9. Paid $1,900 for utilities
Prepare the nine journal entries. Each entry will have a debit and a credit entry. Indicate word Debit followed by thr account title(name); Credit followed by the account title(name).
Debit Cash xxx(amount)
Credit Contributed Capital (amount)
Use appropriate account title(names); there is no need to indent as ecollege may not retain the indent. Please include words debit and credit before the account title (name) and amount clearly.© BrainMass Inc. brainmass.com October 25, 2018, 7:58 am ad1c9bdddf
This is how we would prepare the journal entries. The left (1st) entry is always the debit and the second (right) entry is the credit.
1. Cash 40,000 ...
This solution provides the correct debit, credit, and journal entries based on the information provided. All necessary entries are given.
Journal Entries, Ledgers, and Trial Balance
Please see the attached file.
Sept. 1 Transferred $2,500 from personal savings account to business checking account.
Sept. 10 Signed up for home inspection course at local community college. Cost is $1,000. Put this on the business credit card.
Sept. 15 Purchased reference materials from local book store. Paid $250 cash.
Sept. 25 Signed up for home inspection licensing exam. Placed the $400 fee on the business credit card.
Oct. 1 Purchased a 1 year insurance policy for the business by putting the $2,400 premium on the business credit card.
Oct. 10 Paid $250 on the business credit card. (note: no interest has been charged to the account yet)
Oct. 15 Purchased tools for the business by paying $500 cash.
Oct. 30 Paid $200 to get business cards printed. (Note: this an advertising expense)
Oct. 31 Purchased candy baskets to leave at local realtors' offices to advertise business. Paid $100 cash.
Nov. 1 Purchased office supplies needed to prepare inspection reports. Paid $60 cash.
Nov. 1 Purchased truck costing $10,000 to use for business. Took out auto loan from local bank.
Nov. 8 Completed home inspections this week for clients, received checks for $1,200.
Nov. 15 Completed home inspections this week for clients, received checks totaling $1,600.
Nov. 25 Completed home inspections this week for clients, received checks totaling $750.
Nov. 30 Paid $250 on the business credit card (note: $25 was interest).