Question

Recording Entries for 5 Transactions

1) During the period April 1-28, Acer provided cleaning services to Granger. On April 28, Acer sent Granger a bill for $40,000

2) On April 30 $15,000 of the amount billed was recieved from Granger

3) During the period April 1-28, Acer's employeese earned $18,000 of wages. None of these wages were paid during the period April 1-28

4) On April 30 $12,000 of the amount owing to employees for work during April 1-28 was paid

5) On April 30 Acer recorded $500 of the deprecation on its cleaning equipment.

Required:

1)Record the entries for each of the five transactions in the spreadsheet provided below (The first one has been done for you)

2) How much is the Acer Corporation's net income for the month ended April 20,2018?

Transaction#	Assets	Liabilities	Owner’s Equity	Revenue	Expense	Net Income
1	Accounts receivable 40,000		Retained earnings 40,000	Service revenue 40,000		40,000
2
3
4
5

Answer 1

TR	Assets		liabilities		owners		Revenue	expense		Net
					equity					income
1)	Account receivable				Retained
	40,000				earnings	40,000	40,000			40,000
2)	cash	15000
	Account receivable
	-15,000
3)			Wages payable		Retained earnings			-18,000		-18,000
			18,000		-18000
4)	cash	-12,000	wages payable
			-12000
5)	Accumulated				Retained	earnings		-500		-500
	depreciation -500					-500
2)	net income is 40,000-18000-500=				21500	Answer