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CH 03

Julie Spengel established Spangles Travel Agency in April. During the month, she invested $15,000 cash to start the agency, incurred various expenses totaling $8,200, and performed $10,000 in services with $3,000 received in cash and $7,000 billed. She also withdrew $600 for personal use and received $4,000 in cash from previously billed customers.

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Shirin Aktar
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329 views3 pages

CH 03

Julie Spengel established Spangles Travel Agency in April. During the month, she invested $15,000 cash to start the agency, incurred various expenses totaling $8,200, and performed $10,000 in services with $3,000 received in cash and $7,000 billed. She also withdrew $600 for personal use and received $4,000 in cash from previously billed customers.

Uploaded by

Shirin Aktar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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P1-1A On April 1, Julie Spengel established Spangles Travel Agency.

The Flowing Transaction ware


completed during the month.

1. Invested $15,000 cash to start agency.

2. Paid $600 cash for April office rent.

3. Purchase equipment for $3,000 cash.

4. Incurred $700 of advertising costs in the Chicago tribune, on account.

5. Paid $900 cash for office suppliers.

6. Performed services worth $10,000:$3,000 cash is received from customers and the balance of $7,000
is billed to customer on account.

7. Withdrew $600 cash for personal use.

8. paid Chicago tribune $500 of the amount due in transaction (4).

9. Paid employees salaries $2,500.

10. Received $4,000 in cash from customers who have previously been billed in transaction (6).

P1-2A Judi salon opened a law office on July 1, 2017.on July 31,the balance sheet showed cash
$5,000,accounts receivable $1,500,suppilies $500,equipment $6,000,account payable $4,200,and
owners capital $8,800,during august the flowing transactions occurred:

1. Collected $1,200 of accounts receivable.

2. Paid $2,800 cash of Accounts payable.

3. Recognized revenue of $7,500 of which $3,000 is collected in cash and the balance is due in
September.

4. purchased additional equipment for $2, 000, paying $400 in cash and the balance on account.

5. paid salaries $2, 500, rent for august$900, and advertising expenses $400.

6 Withdrew $700 cash for personal use.

7. Received $2,000 from standard federal bank-money borrowed on a note payable.

8. Incurred utility expenses for month on account $270.


P1-A4 Trixie Maye started her own consulting firm, Matrix consulting, on may 1,2017.The flowing
transactions occurred during the month of may:

1. Trixie invested $7,000 cash in the business.

2. Paid $900 for office rent for the month.

3. purchased $600 of supplies on account.

5. Paid $125 to advertise in the county news.

9. Received $4,000 cash for services performed.

12. Withdrew $1,000 cash for personal use.

15. performed $5,400 of services on account.

17. Paid $2,500 for employee’s salaries.

20. Paid for the supplies purchased on account on May 3.

23. received a cash payment of $4,000 for services performed on account on may 15.

26. Borrow $5,000 from the bank on note payable.

29. Purchased equipment for $4,200 on account.

30. Paid $275 for utilities.

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