The following were some transactions that Albert Stevens, an interior designer, completed in the month of September 2016. His accountant is preparing the financial statements for Albert Stevens’ business as of September 30, 2016 and may need to prepare journal entries to record these transactions. Prepare these journal entries. If no entry is required, write “no entry required” in the answer.
The following accounts can be used for the general journal entries.
Bank Accounts receivable Accounts Payable Deposits from customers Design service revenue Office expenses
a. Received a deposit of $500 on September 4, 2016 from ABC Company for a job that will start in September 2016. The total amount to bill for the job when completed is $2,000.
b. Completed a design job on September 12, 2016 for $7,500, customer paid cash in full on that day.
c. Completed the job for ABC Company on September 20, 2016 and invoiced the customer for the remaining amount on the same day. The customer has an account with Albert Stevens. The remaining balance is due 30 days from the invoice date.
d. Purchased office supplies on September 22, 2016 for $800 from Staples on account, terms were n10, invoice #458625.
e. Signed a contract with a customer XYZ Company on September 25, 2016 worth $6,500. According to the contract Albert Stevens will provide interior design services to XYZ Company for its new office. The design work will start in October 2016.
f. Issued cheque to Staples on September 30, 2016 for $300 to make partial payment on invoice #458625.

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Answer rating: 100% (QA)

Answer a No entry required b Debit Design service revenue 7500 Credit Bank 7500 c Debit Accounts Rec... View the full answer