Question: Action Advertising Inc engaged in the following business transactions during

Action Advertising, Inc., engaged in the following business transactions during May of 2012:
May 1 Borrowed $150,000 from Northern Bank. The company president signed a note payable to the bank in the name of Action Advertising, Inc.
3 Paid $135,000 cash to purchase an office building.
6 Provided services to customers on account, $11,800.
9 Purchased $1,100 of office supplies on account.
13 Provided services to cash customers, $8,100.
15 Paid $5,000 of dividends to company stockholders.
17 Received payment on account from credit customers, $7,500.
18 Paid property tax expense on office building, $1,250.
22 Paid employee salaries, $3,350.
26 Paid cash to purchase supplies, $1,300.
31 Paid $5,000 on account.

Action Advertising, Inc., uses the following accounts: Cash, Accounts Receivable, Supplies, Building, Accounts Payable, Notes Payable, Common Stock, Dividends, Service Revenue, Salaries Expense, and Property Tax Expense.

1. Journalize each transaction. Omit explanations.

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  • CreatedApril 29, 2014
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