Prepare journal entries to record the following transactions:

Dec. 1 -

Mr. John Miller deposited $100,000 as initial investment to his newly open business, Miller Repair Shop

Dec3

John bought supplies, $10,000 on account.

Dec 5

A piece of land personally owned by John was transferred to the business for the use of its operation.

The land was acquired 2 years ago with a cost of $50,000. The market value as of this date is $75,000.

Dec 7

50% of the account on December 3 was paid.

Dec 8

An equipment was acquired for $40,000. 25% downpayment was made and a promissory note was issued for the balance.

Dec 9

The customers were billed forservices rendered, $5,000.

Dec 10

$7,500 was received from cash customers.

Dec 11

Some customers billed on December 9 issued promissory notes in payment of their accounts for a total of $3,000.

Dec 12

Utilities expenses were paid, $1,500.

Dec 14

Insurance premium was paid, $4,500.

Dec 15

Salaries of employees were paid, $3,200.

Dec 16

John withdrew cash, $2,000 for personal use.

Dec 17

Furniture's and Fixtures were acquired, $15,000. $5,000 down payment was made and the balance on account.

Dec 18

$1,000 worth of interest on the note was paid.

Dec 20

Collected $1,000 from the customers on account.

Dec 22

$12,500 was received from cash customers.

Dec 26

Miscellaneous expenses were paid, $1,200.

Dec 28

Salaries of employees were paid, $3,200.

Dec 31

Depreciation expense was recorded for equipment $1,250.

Dec 31

Depreciation expense was recorded for furniture's and fixtures, $750.

Dec 31

$4,500 worth of supplies were used.

Answer rating: 100% (QA)

Journal Entries for Miller Repair Shop December 1st Debit Cash 100000 Credit Owners Capital 100000 D... View the full answer