Question

Blossom Company had the following transactions during the first week of May. Record the following transactions in general journal form. Identify each transaction by number. You may omit explanations of the transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

1.		Purchased supplies on account for $440.
2.		Performed services and billed the customer $1,500.
3.		Received cash of $770 for services to be performed in June.
4.		Collected $500 on account.
5.		Paid $330 on account.

No.	Account Titles and Explanation	Debit	Credit
1.	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
2.	enter an account title		enter a credit amount
	enter an account title	enter a debit amount
3.	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
4.	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
5.	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

If an expense is paid with cash

A	expenses will decrease.

B	assets will decrease.

C	retained earnings will increase.

D	liabilities will increase.

Which of the following is the correct sequence of events?

A	Analyze a transaction; record it in the journal; post it to the ledger

B	Record a transaction in the journal; analyze the transaction; post it to the ledger

C	None of the answer choices provides the correct sequence

D	Analyze a transaction; post it to the ledger; record it in the journal

Answer 1

Journal entries

No	General Journal	Debit	Credit
1	Supplies	440
	Account payable		440
2	Account receivable	1500
	Service revenue		1500
3	Cash	770
	Unearned Service revenue		770
4	Cash	500
	Account receivable		500
5	Account payable	330
	Cash		330

2) IF expense paid in cash then assets decrease

So answer is b) Asset decrease

3) event sequence

Answer is a) Analyze a transaction; record it in the journal; post it to the ledger