Recording Nonquantitative Journal Entries
The following is a series of accounts for Kruger & Laurenzo, Incorporated, which has been operating for two years. The accounts are listed and numbered for identification. Following the accounts is a series of transactions. For each transaction, indicate the account(s) that should be debited and credited by entering the appropriate account number(s) to the right of each transaction. If no journal entry is needed, write none after the transaction. The first transaction is given as anexample.

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Account Title Account Title Account No. Account No. Cash Wages Payable Income Taxes Payable Contributed Capital Retained Earnings Service Revenue Accounts Receivable 10 Supplies Prepaid Expenses Buildings 11 12 13 Land 14 Other Expenses (wages, supplies, interest) Income Tax Expense Accounts Payable Mortgage Payable 15 Transactions Debit Credit a. Example: Issued stock to new investors. b. Incurred and recorded operating expenses on credit to be paid next period. c. Purchased on credit but did not use supplies this period. d. Performed services for customers this period on credit. e. Prepaid a fire insurance policy this period to cover the next 12 months. f. Purchased a building this period by making a 20 percent cash down payment and signing a mortgage loan for the balance. g. Collected cash this year for services rendered and recorded in the prior year. h. Collected cash for services rendered this period. i. Paid cash this period for wages earned and recorded last period. j. Paid cash for operating expenses charged on accounts payable in the prior period. k. Paid cash for operating expenses incurred in the current period. 1. Made a payment on the mortgage loan, which was part principal repayment and part interest. m. This period a shareholder sold some shares of her stock to another person for an amount above the original issuance price. n. Used supplies on hand to clean the offices. o. Recorded income taxes for this period to be paid at the beginning of the next period. p. Declared and paid a cash dividend this period. 11 -234tino7 00