Prepare entries to record the following tr XXXXXXXXXXPrepare entries to record the following...

Question

Prepare entries to record the following transactions:
(a) a $5,000 cash investment made by the owner of a business.
(b) $1,700 in revenue earned on account.
(c) $2,500 of cash received in advance.
(d) $750 of advertising paid in advance.
(e) a $1,950 withdrawal
(f) the collection of $650 in cash on account.
(g) $275 of supplies purchased on account.
(h) $420 of utilities expense owed.
(i) a $215 cash payment made on account.
(j) $700 of revenue earned in cash.
2. Before any adjustments have been recorded, unearned rent has a normal balance of $57. If $18 of rent remains unearned at year end, prepare the adjusting entry to record rental income earned.
3. On October 1 of the cu
ent year, a business prepaid $12 of property tax, in advance, for the next 12 months.
As of December 31, it owed but had not yet recorded $6 in wages due in January of the following year.
Prepare any adjusting and closing entries you think are needed at year end.
4. What would the normal balance be of a liability account a post closing trial balance?
A revenue account?
Drawing?
Explain.
1. The Journal entries are as follows:






    a
    cash

    5,000



    capital


    5,000








    A/R

    1,700



     Revenue earned


    1,700







    c
    cash

    2,500



     unearned income


    2,500







    d
    prepaid...

David · Accepted Answer

Prepare entries to record the following transactions:
(a) a $5,000 cash investment made by the owner of a business.
(b) $1,700 in revenue earned on account.
(c) $2,500 of cash received in advance.
(d) $750 of advertising paid in advance.
(e) a $1,950 withdrawal
(f) the collection of $650 in cash on account.
(g) $275 of supplies purchased on account.
(h) $420 of utilities expense owed.
(i) a $215 cash payment made on account.
(j) $700 of revenue earned in cash.
2. Before any adjustments have been recorded, unearned rent has a normal balance of $57. If $18 of rent remains unearned at year end, prepare the adjusting entry to record rental income earned.
3. On October 1 of the current year, a business prepaid $12 of property tax, in advance, for the next 12 months. 
As of December 31, it owed but had not yet recorded $6 in wages due in January of the following year.
 Prepare any adjusting and closing entries you think are needed at year end.
4. What would the normal balance be of a liability account a post closing trial balance?
 A  revenue account? 
Drawing?
 Explain.
1. The Journal entries are as follows:
	
	
	
	
	
	
	a
	cash
	
	5,000
	
	
	
	capital
	
	
	5,000
	
	
	
	
	
	
	
	b
	A/R
	
	1,700
	
	
	
	         Revenue earned
	
	
	1,700
	
	
	
	
	
	
	
	c
	cash
	
	2,500
	
	
	
	                   unearned income
	
	
	2,

Prepare entries to record the following tr XXXXXXXXXXPrepare entries to record the following transactions:(a) a $5,000 cash investment made by the owner of a business.(b) $1,700 in revenue earned on...

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