Question

The May transactions of Indigo Corporation were as follows.

May 4 Paid $880 due for supplies previously purchased on account.

7 Performed advisory services on account for $7,110.

8 Purchased supplies for $820 on account.

9 Purchased equipment for $2,480 in cash.

17 Paid employees $710 in cash.

22 Received bill for equipment repairs of $810.

29 Paid $1,220 for 12 months of insurance policy. Coverage begins June 1.

Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1

--Journal entries as asked

Date	Accounts title	Debit	Credit
04-May	Accounts payable	$880
	Cash		$880
	(to record payment)
07-May	Accounts receivables	$7,110
	Service Revenue		$7,110
	(to record revenue)
08-May	Supplies	$820
	Accounts Payable		$820
	(to record supply purchase)
09-May	Equipment	$2,480
	Cash		$2,480
	(purchase of equipment)
17-May	Salary expense	$710
	Cash		$710
	(Payment to employees)
22-May	Repair expense	$810
	Cash		$810
	(to record equipment repair)
29-May	Prepaid Insurance	$1,220
	Cash		$1,220
	(to record payment of insurance)