On January 1, Gold Travel Agency, Inc. began operations. The following transactions were completed during the month.
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On January 1, Gold Travel Agency, Inc. began operations. The following transactions were completed during the month.
- Issued common stock for $24,000 cash.
- Obtained a bank loan for $7,000 by issuing a note payable.
- Paid $11,000 cash to buy equipment.
- Paid $1,200 cash for January office rent.
- Paid $1,450 for supplies.
- Purchased $600 of advertising in the Daily Outlook, on account.
- Performed services for $18,000: cash of $2,000 was received from customers, and the balance of $16,000 was billed to customers on account.
- Paid $400 cash dividend to stockholders.
- Paid the utility bill for the month, $2,000.
- Paid Daily Outlook the amount due in transaction (6).
- Paid $40 of interest on the bank loan obtained in transaction (2).
- Paid employees’ salaries, $6,400.
- Received $12,000 cash from customers billed in transaction (7).
- Paid income tax, $1,500.
Journalize these transactions, including transaction number, account titles and debit/credit entries.
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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