Question

Robinson starts a plumbing service named Crusoe Waterworks,Transactions of Cruose Waterworks during the first year of operations are given below :

a)Robinson deposited 7,000 dollars into a new cheking accounts for the business and recorded the capital contribution.

b)Paid 4,000 dollars cash for equipment to be used for plumbing repairs

c)Borrowed 30,000 dollars from a local bank and deposited the money in the checking account.

d)Paid 800 dollars rent for the year.

d)Purchased 900 dollars of office supplies on account.

f)completed a plumbing repair project for a local lawyer and received 3,500 dollars cash.

Answer 1

Journal entry :

No	Accounts & explanation	debit	credit
a	Bank	7000
	Owner's capital		7000
	(To record capital contribution)
b	Equipment	4000
	Cash		4000
	(To record equipment purchased)
c	Bank	30000
	Bank loan account		30000
	(To record loan taken)
d	Rent expense	800
	Cash		800
	(To record rent paid)
e	Office supplies	900
	Account payable		900
	(To record office supplies purchased)
f	Cash	3500
	Service revenue		3500
	(To record service revenue)