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Accounting Problems
Problem 1:JOURNAL ENTRIES
The ledger accounts given below, with an identification number for each, are used by Wynne Company.
Instructions: Indicate the appropriate entries for the month of June by placing the appropriate identification number(s) in the debit and credit columns provided. Item 0 is given as an example. Write “none” if no entry is appropriate.
1. Cash 7. Salaries Payable 13. Service Revenue
2. Accounts Receivable 8. Accounts Payable 14. Equipment Expense
3. Supplies 9. Unearned Service Revenue 15. Advertising Expense
4. Prepaid Salaries 10. Notes Payable 16. Supplies Expense
5. Prepaid Advertising 11. H. Wynne, Capital 17. Rent Expense
6. Equipment 12. H. Wynne, Drawing 18. Salaries Expense
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Entry Account(s) Account(s)
No. Entry Information Debited Credited
0. June 1 H. Wynne invested $25,000 in the business. 1 11
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1. June 4 Paid a supplier $2,000 cash on account.
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2. June 5 Equipment was purchased at a cost of $5,000; a three-month, 12% note payable was signed for this amount.
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3. June 8 Received $7,000 from customers for services rendered during the week.
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4. June 10 Purchased supplies for $3,500 cash. The supplies are expected to last through August.
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5. June 14 Paid $400 cash to the Daily News for advertisements run this past week.
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6. June 16 Billed customers $6,000 for services rendered.
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7. June 19 Paid $2,000 in cash to Santo Company for June rent.
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8. June 25 Additional supplies were purchased on account at a cost of $1,000 from Supply Company. These supplies will be used during…