Question

^{2. Do the following journal entries. Please do not forget to date. Do not forget to indent when you are crediting.   (44 points)}

^{A partial list of the account titles used by the company includes}

^{Cash                                                                                                                 Client Revenue                                                Prepaid Insurance}

^{Accounts Receivable                                                               Office Rent Expense}

^{Office Equipment                                                                     Salary Expense}

^{Vehicles                                                                                   Utilities Expense}

^{Notes Payable                                                                                                 Accounts Payable}

^{Janet Enterprises incorporated on May 3, 2015. The company engaged in the following transactions during its first month of operations:}

^{May 4         Paid office rent expense of $1800}

^{May 5          Purchased office supplies for $600 cash. The supplies will last for several month}

^{May 15        Purchased office equipment for $12400 on account. The entire amount is due June 15}

^{May 18       Purchased a company car for $45000. Paid $15000 cash and issued a note payable for the    remaining amount owed}

^{May 20       Billed clients $120000 on account}

^{May 29       Paid May utilities of $500}

^{May 30       Received $90000 from clients billed on May 20}

^{May 31       Recorded and paid salary expense of $32000}

^{May 31       Purchased a 2-year firs insurance policy for $5000}

Answer 1

Date	General Journal	Debit	Credit
May 4	Office rent expense	$1,800
	Cash		$1,800
	( To record rent expense)
May 5	Office supplies	$600
	Cash		$600
	( To record purchase of supplies)
May 15	Office equipment	$12,400
	Accounts payable		$12,400
	( To record purchase of office equipment)
May 18	Vehicles	$45,000
	Cash		$15,000
	Note payable		$30,000
	( To record purchase of vehicle)
May 20	Accounts receivable	$120,000
	Client revenue		$120,000
	( To record clients revenue)
May 29	Utilities expense	$500
	Cash		$500
	( To record payment of utilities expense)
May 30	Cash	$90,000
	Accounts receivable		$90,000
	( To record amount received from client )
May 31	Salary expense	$32,000
	Cash		$32,000
	( To record salary expense)
May 31	Prepaid insurance	$5,000
	Cash		$5,000
	( To record purchase of insurance)