question archive Assume that on July 1, Butler Company purchases a delivery truck costing $14,000
Assume that on July 1, Butler Company purchases a delivery truck costing $14,000
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Assume that 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. General Journal Date Account Title Ref . Debit Credit Sept. 1 Delivery equipment 14,000 Cash 8,000 Accounts payable 6.000 Purchased truck for cash with balance on account Exercise: Frontier Park was started on April 1 by C. J. Mendez. The following selected events and transactions occurred during April. Apr. 1 Mendez invested $40,000 cash in the business. 4 Purchased land costing $30,000 for cash, 8 Incurred advertising expense of $1,800(on account. 11 Paid salaries to employees $1,500. 12 Hired park manager at a salary of $4,000 per month. 13 Paid $1,500 cash for a one-year insurance policy. 17) Withdrew $1,000 cash for personal use. 20 Received $5,700 in cash for admission fees) 25 Sold 100 coupon books for $25 each. Each book contains 10 coupons that entitle the holder to one admission to the park. 2 30 Received $8,900 in cash admission fees. 30 Paid $900 on balance owed for advertising incurred on April 8. Mendez uses the following accounts: Cash; Prepaid Insurance; Land; Accounts Payable; Unearned Admission Revenue; C. J. Mendez, Capital; C. J. Mendez, Drawing; Admission Revenue; Advertising Expense; and Salaries Expense.
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Apr 1 Cash..........................................40,000
C.J Mendez, capital.................................40,000
Apr 4 Land..........................................30,000
Cash..........................................................30,000
Apr 8 Advertising expense............1,800
Accounts payable.................................1,800
Apr 11 Sales Expense........................1,500
Cash........................................................1,500
Apr 12 No entry.........no transaction
Apr 13 prepaid Insurance.........................1,500
Cash............................................................1,500
Apr 17 C. J. Mendez, Drawing....................1,000
Cash...................................................................1,000
Apr 20 Cash...................................................5,700
Admission Revenue..............................5,700
Apr 25 Cash........................................................2,500
unearned Admission Revenue..............2,500
Apr 30 Cash.......................................................8,900
Admission Revenue.......................8,900
Apr 30 Accounts payable..................................900
Cash......................................................................900
