Question

a. Performed $8,200 of services on account.
b. Collected $5,600 cash on accounts receivable.
c. Paid $1,450 cash in advance for an insurance policy.
d. Paid $400 on accounts payable.
e. Recorded the adjusting entry to recognize $300 of insurance expense.
f. Received $1,600 cash for services to be performed at a later date.
g. Purchased land for $9,000 cash. Purchased supplies for $350 cash.

Required:
Record each of the above transactions.

Answer 1

Answer and Explanation:

The journal entries are as follows:

a.

Accounts receivable 8200  

         To Service revenue  8200

(being services performed on account is recorded)  

b. Cash 5600  

          To Accounts receivable  5600

(Being collections on account is recorded)  

c. Prepaid insurance 1450  

           To Cash  1450

(being cash paid in advance for insurance is recorded)  

d. Accounts payable 400  

            to Cash  400

(Being record payment on account is recorded)  

e. Insurance expense 300  

           To Prepaid insurance  300

(Being  insurance expense is recorded)  

f. Cash 1600  

            to  Unearned revenue  1600

(Being cash received for services to be performed is recorded)  

g. Land 9000  

             To Cash  9000

(Being land purchased for cash is recorded)  

h. Supplies 350  

              To Cash  350

(being supplies purchased for cash is recorded)