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19 November, 05:13

Journalize the following transactions for Pharoah Company. (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.) Sept. 1 Purchased supplies for $1,050 cash. 5 Paid $440 cash dividend to stockholders. 7 Received $5,800 down payment from customer for services to be provided in the future. 16 Received $800 cash from a previously billed customer for payment of services provided in the prior month. 22 Purchased equipment for $3,300 by paying $1,250 cash and issued a note payable for the balance.

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  1. 19 November, 06:33
    0
    Sep 1

    Dr Supplies 1,050

    Cr Cash 1,050

    (to record purchase of supplies by cash)

    Sep 5

    Dr Retained Earnings 440

    Cr Cash 440

    (to record cash dividend payment)

    Sep 7

    Dr Cash 5,800

    Cr Unearned revenue 5,800

    (to record cash receipt from unearned revenue)

    Sep 16

    Dr Cash 800

    Cr Account Receivable 800

    (to record collection of receivable)

    Sep 22

    Dr Equipment 3,300

    Cr Cash 1,250

    Cr Note payable 2,050

    (to record the purchase of equipment)

    Explanation:

    Sep 1: Supplies goes up by 1,050 or Debit 1,050; Cash goes down by the same amount or Credit 1,050 as supplies are purchased by cash;

    Sep 5: Dividend is paid from Retained earning account so Retained earning account goes down (Dr) by 440; Cash goes down (credit) as it is distributed as dividend to shareholders at the same amount 440;

    Sep 7: Cash increases (Dr) by 5,800 followed the cash receipt while Unearned revenue (Liability account) increases (credit) as the revenue is not earned.

    Sep 16: This is the account receivable's collection activities as revenue had already been delivered and billed last period. So Cash increases (Dr) by $800 and Account receivable decreases (Cr) by the same amount.

    Sep 22: Equipment goes up (Dr) by $3,300 while Cash goes down (Cr) 1,250 and Note Payable goes up (Cr) by $2,050 (3,300-1,250) to finance for the purchase.
  2. 19 November, 07:39
    0
    Journalize the following transactions for Pharoah Company.

    Explanation:

    1.

    Supllies 1050

    Cash 1050

    5.

    Retained earnings 440

    dividen Payable 440

    7.

    Cash 5800

    deferred revenue 5800

    16.

    Cash 800

    Account receivable 800

    33.

    Equipment 3300

    cash 1250

    Account payable 2050
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