The Ryan Express, provider of tax services, starts operations on 1/1/17. Now that the company has been in business for more than a year, the controller is assembling financial statements for the year ended 12/31/17. During 2017, the following transactions took place: 1. On January 1, 2017, shareholders paid $1,000,000 in cash for common stock. 2. Ryan Express earned revenue of $500,000 which increased Accounts Receivable (not cash). 3. Ryan Express paid $125,000 in salaries expense. 4. Ryan Express paid $75,000 in rent expense. 5. Ryan Express bought $25,000 of supplies but did not pay cash, so this increased Accounts Payable. 6. Ryan Express paid $10,000 in travel expense. 7. Clients paid Ryan Express cash of $400,000 for transaction

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Business

Lizbeth Jenkins

5 December, 05:32

The Ryan Express, provider of tax services, starts operations on 1/1/17. Now that the company has been in business for more than a year, the controller is assembling financial statements for the year ended 12/31/17. During 2017, the following transactions took place: 1. On January 1, 2017, shareholders paid $1,000,000 in cash for common stock. 2. Ryan Express earned revenue of $500,000 which increased Accounts Receivable (not cash). 3. Ryan Express paid $125,000 in salaries expense. 4. Ryan Express paid $75,000 in rent expense. 5. Ryan Express bought $25,000 of supplies but did not pay cash, so this increased Accounts Payable. 6. Ryan Express paid $10,000 in travel expense. 7. Clients paid Ryan Express cash of $400,000 for transaction

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Quintin Brewer · Answer 1

cash 1,000,000 debit

Common Stock 1,000,000 credit

account receivables 500,000 debit

Accounts payable 500,000 credit

salaries expense 125,000 debit

rent expense 75,000 debit

cash 200,000 credit

supplies 25,000 debit

Accounts payable 25,000 credit

Cash 400,000 debit

Service revenue 400,000 credit

Explanation:

We reocrd the entries among the joural considering debit = credit