On August 1, 2021, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Vaughn Ltd.

Accounts payable		$2,320
Accounts receivable		3,960
Accumulated depreciation equipment		1,960
Cash		6,010
Common shares		13,000
Deferred revenue		1,320
Equipment		9,500
Interest receivable		19
Note receivable, due October 31, 2021		3,800
Retained earnings		4,179
Salaries payable		1,550
Supplies		1,040

During August, the following summary transactions were completed.

Aug. 1		Paid $410 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September. (Hint: Use the Prepaid Advertising account.)
3		Paid August rent $390. (Hint: Use the Prepaid Rent account.)
6		Received $3,310 cash from customers in payment of accounts.
10		Paid $3,050 for salaries due employees, of which $1,500 is for August and $1,550 is for July salaries payable.
13		Received $3,610 cash for services performed in August.
15		Purchased additional equipment on account $1,930.
17		Paid creditors $1,930 of accounts payable due.
22		Purchased supplies on account $870.
24		Paid salaries $2,700.
27		Performed services worth $4,420 on account and billed customers.
29		Received $770 from customers for services to be provided in the future.
31		Declared and paid a $500 dividend.

(a)

Record the above summary transactions. (Record journal entries in the order presented in the problem. List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer rating: 100% (QA)

SNo Date Accounts 1 Aug 31 Advertising expense 4102 Prepa... View the full answer