Ask Question
4 November, 17:13

Following are the January transactions:

Received a $665 deposit from a customer who wanted her piano rebuilt in February.

Rented a part of the building to a bicycle repair shop; $685 rent received for January.

Delivered five rebuilt pianos to customers who paid $18,675 in cash.

Delivered two rebuilt pianos to customers for $9,600 charged on account.

Received $8,000 from customers as payment on their accounts.

Received an electric and gas utility bill for $395 for January services to be paid in February.

Ordered $1,255 in supplies.

Paid $2,600 on account in January.

Paid $12,200 in wages to employees in January for work done this month. Received and paid cash for the supplies in (g).

Prepare journal entries for the above January transactions.

+5
Answers (1)
  1. 4 November, 20:10
    0
    The journal entries to record the transactions are given below.

    Received a $665 deposit from a customer who wanted her piano rebuilt in February.

    Debit Cash Asset $ 665

    Credit Advances from customers $ 665

    Rented a part of the building to a bicycle repair shop; $685 rent received for January.

    Debit Cash Asset $ 685

    Credit Rental income $ 685

    Delivered five rebuilt pianos to customers who paid $18,675 in cash.

    Debit Cash Asset $ 18,675

    Credit Sales income $ 18,675

    Delivered two rebuilt pianos to customers for $9,600 charged on account.

    Debit Account Receivable Asset $ 9,600

    Credit Sales Income $ 9,600

    Received $8,000 from customers as payment on their accounts.

    Debit Cash Asset $ 8000

    Credit Receivable Asset $ 8000

    Received an electric and gas utility bill for $395 for January services to be paid in February.

    Debit Utility Expense $ 395

    Credit Payable Liability $ 395

    Ordered $1,255 in supplies.

    No entry required

    Paid $2,600 on account in January.

    Debit Payable Liability $ 2,600

    Credit Cash Asset $ 2,600

    Paid $12,200 in wages to employees in January for work done this month.

    Debit Wage expense $ 12,200

    Credit Cash Asset $ 12,200

    Received and paid cash for the supplies in (g).

    Debit Cash Asset $ 1,255

    Credit Sales income $ 1,255
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Following are the January transactions: Received a $665 deposit from a customer who wanted her piano rebuilt in February. Rented a part of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers