Tabor Hill Designers entered into the following transactions during February of the current year. Analyze each of the following transactions and prepare the journal entry required to record the related transaction.

(a) Provide website design services for $40,000.

Debit and credit the accounts affected

(b) Provide website design services to Acme Company, for $20,000 on account. We expect Acme to pay in the future.

Debit and credit the accounts affected

(c) Collect $18,000 from Acme Company on account.

Debit and credit the accounts affected

(d) Sell a $1,000 gift certificate.

Debit and credit the accounts affected

Ensure the equation still balances and debits = credits

(e) Paid $900 principal and $100 interest on the short-term note payable.

Debit and credit the accounts affected

(f) Paid $16,000 wages to employees.

Debit and credit the accounts affected

g) Paid $3,000 insurance for next year in advance.

Debit and credit the accounts affected

(h) Paid $9,000 rent for next six months in advance.

Debit and credit the accounts affected

(i) Received $250 telephone bill for previous month, to be paid next month.

Debit and credit the accounts affected

(j) Paid $500 utility bill for this month.

Debit and credit the accounts affected

 

Answer rating: 100% (QA)

a Provide website design services for 40000 Debit Accounts Receivable or Trade Receivables 40000 Credit Service Revenue 40000 b Provide website design services to Acme Company for 20000 on account We ... View the full answer