Journal Entries - Chap2 On September 1 stockholders...

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Chap2: On September 1, stockholders’ invested $15,000 cash in the corporation in exchange for shares of stock, and Softbyte purchased computer equipment for $7,000 cash. Sept.1 Cash 15000 Common Stock 15000 Equipment 7000 Cash 7000 Chap2: On July 1, Butler Company purchases a delivery truck costing $14,000. It pays $8,000 cash now and agrees to pay the remaining $6,000 on account. July 1 Equipment 14000 Cash 8000 Account Payable 6000 Chap2: On October1, C. R. Byrd invests $10,000 cash in an advertising company to be known as Pioneer Advertising Agency Inc. Oct. 1 Cash 10000 Common Stock 10000 Chap2: On October 1, Pioneer purchases office equipment costing $5,000 by signing a 3-month, 12%, $5000 note payable. Oct. 1 Equipment 5000 Notes Payable 5000 Chap2: On October 3, Pioneer pays office rent for October in cash, $900. Oct. 3 Rent Expense 900 Cash 900 Chap2: On October 4, Pioneer pays $600 for a one-year insurance policy that will expire next year on September 30. Oct. 4 Prepaid Insurance 600 Cash 600 (Paid one-year policy, effective date October 1) Chap2: On October 5, Pioneer purchases an estimated 3-month supply of advertising materials on account from Aero Supply for $2,500. Oct. 5 Supplies 2500 Accounts Payable 2500 Chap2: On October 20, Pioneer’s board of directors declares and pays a $500 cash dividend to stockholders. Oct. 20 Dividends 500 Cash 500 Chap2: On October 26, Pioneer owes employee salaries of $4,000 and pays them in cash. Oct. 26 Salaries and Wages Expense 4000 Cash 4000 Chap2: On October 31, Pioneer receives $10,000 in cash from Copa Company for advertising services performed in October. Oct. 31 Cash 10000 Service Revenue 10000 Chap3: Pioneer Advertising Agency Inc. purchased supplies costing $2,500 on October 5. Pioneer recorded the purchase by increasing (debiting) the asset Supplies. This account shows a balance of $2,500 in the October 31 trial balance. An inventory count at the close of business on October 31 reveals that $1,000 of supplies are still on hand. AE Prepaid Expenses: Debit Expense Account↑ Credit Asset Account↓ or Contra Asset Oct. 31 Supplies Expenses 1500 Supplies 1500 Chap3: On October 4, Pioneer Advertising Agency paid $600 for a one-year fire
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insurance policy. Coverage began on October 1. Pioneer recorded the payment by increasing (debiting) Prepaid Insurance. This account shows a balance of $600 in the October 31 trial balance. Insurance of $50 ($600 ÷ 12) expires each month. AE Prepaid Expenses: Debit Expense Account↑ Credit Asset Account↓ or Contra Asset Oct. 31 Insurance Expense 50 Prepaid Insurance 50 Chap3: For Pioneer Advertising, assume that depreciation on the equipment is $480 a year, or $40 per month. AE Prepaid Expenses: Debit Expense Account↑ Credit Asset Account↓ or Contra Asset Accumulated Depreciation is a contra asset account (credit). Oct. 31 Depreciation Expense 480 Accumulated Depreciation 480 Chap3: Pioneer Advertising Agency received $1,200 on October 2 from R. Knox for advertising services expected to be completed by December 31. Unearned Service Revenue shows a balance of $1,200 in the October 31 trial balance. Analysis reveals that the company performed $400 of services in October. AE Unearned Revenue: Debit Liability Account↓ Credit Revenue
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