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

Liberty Advertising, Inc., engaged in the following business transactions during July of 2012:
Jul 1 Borrowed $325,000 from Oakville Bank. The company president signed a note payable to the bank in the name of Liberty Advertising, Inc.
3 Paid $200,000 cash to purchase an office building.
6 Provided services to customers on account, $16,900.
9 Purchased $1,000 of office supplies on account.
13 Provided services to cash customers, $6,300.
15 Paid $4,000 of dividends to company stockholders.
17 Received payment on account from credit customers, $4,400.
18 Paid property tax expense on office building, $1,400.
22 Paid employee salaries, $3,600.
26 Paid cash to purchase supplies, $800.
31 Paid $3,500 on account.

Liberty 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.

Requirement
1. Journalize each transaction. Omit explanations.




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  • CreatedApril 29, 2014
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