Question

Journalize the following transactions for Cullumber Company.

Sept. 1 Purchased supplies for $1,100 cash.
5 Paid $490 cash dividend to stockholders.
7 Received $6,300 down payment from customer for services to be provided in the future.
16 Received $850 cash from a previously billed customer for payment of services provided in the prior month.
22 Purchased equipment for $3,800 by paying $1,500 cash and issued a note payable for the balance.

Answer 1

Answer:

Sept. 1      DR Supplies                                             $1,100

                      CR Cash                                                               $1,100

Sept 5.      DR Retained Earnings                             $490

                        CR Cash                                                               $490

Sept 7        DR Cash                                                   $6,300

                         CR Unearned Service Revenue                       $6,300

Sept 16       DR Cash                                                      $850

                         CR Accounts Receivable                                       $850

Sept 22       DR Equipment                                           $3,800

                          CR Cash                                                                $1,500

                                 Notes Payable (3,800 - 1,500)                      $2,300