A01 Introduction to Accounting

Part A (20 points)

Prepare in proper form journal entries for the following transactions. Omit explanations.

October

2 Owner made a cash investment into the company $5,000

8 Bought supplies on account $100.

10 Paid salaries, $700

15 Paid for supplies purchased on October 8

21 Received company telephone bill, to be paid later, $30

  

Part B (5 points each for a possible total of 50 points)

Record the following selected transactions for January in a two-column journal, identifying each entry by letter:

(a) Earned $7,000 fees; customer will pay later.

(b) Purchased equipment for $45,000, paying $20,000 in cash and the remainder on credit

(c) Paid $3,000 for rent for January.

(d) Purchased $2,500 of supplies on account.

(e) A. Allen $1,000 investment in the company.

(f) Received $7,000 in cash for fees earned previously.

(g) Paid $1,200 to creditors on account.

(h) Paid wages of $6,250.

(i) Received $7,150 from customers on account.

(j) A. Allen withdrawal of $1,750. 

            PLEASE REVIEW ATTACHEMENT FOR REMAINDER OF PART C 

Part C 

(1) (10 points) From the following items in the income statement columns of the worksheet of Friend's Tutoring at December 31, prepare the closing entries without explanation, assuming that a $1,000 withdrawal was made during the period.