Examlex

Solved

Larry Matt, Inc Prepare General Journal Entries to Record These Transactions

question 126

Essay

Larry Matt, Inc. completed these transactions during December of the current year:  Dec. 1 Began a financial services practice by investing $15,000 cash and office  equipment having a $5,000 value. 2 Purchased $1,200 of office equipment on credit. 3 Purchased $300 of office supplies on credit. 4 Completed work for a client and immediately received a payment of $900 cash. 8 Completed work for Precept Paper Co. on credit, $1,700.10 Paid for the supplies purchased on credit on December 3.14 Paid for the annual $960 premium on an insurance policy. 18 Received payment in full from Precept Paper Co. for the work completed on  December 8.27 The company paid $650 cash in dividends to the owner. (sole shareholder) 30 Paid $175 cash for the December utility bills. 30 Received $2,000 from a client for financial services to be rendered next year. \begin{array} { | r | l | } \hline \text { Dec. } 1 & \begin{array} { l } \text { Began a financial services practice by investing } \$ 15,000 \text { cash and office } \\\text { equipment having a } \$ 5,000 \text { value. }\end{array} \\\hline 2 & \text { Purchased } \$ 1,200 \text { of office equipment on credit. } \\\hline 3 & \text { Purchased } \$ 300 \text { of office supplies on credit. } \\\hline 4 & \text { Completed work for a client and immediately received a payment of } \$ 900 \text { cash. } \\\hline 8 & \text { Completed work for Precept Paper Co. on credit, } \$ 1,700 . \\\hline 10 & \text { Paid for the supplies purchased on credit on December } 3 . \\\hline 14 & \text { Paid for the annual } \$ 960 \text { premium on an insurance policy. } \\\hline 18 & \begin{array} { l } \text { Received payment in full from Precept Paper Co. for the work completed on } \\\text { December } 8 .\end{array} \\\hline 27 & \text { The company paid } \$ 650 \text { cash in dividends to the owner. (sole shareholder) } \\\hline 30 & \text { Paid } \$ 175 \text { cash for the December utility bills. } \\\hline 30 & \text { Received } \$ 2,000 \text { from a client for financial services to be rendered next year. } \\\hline\end{array} Prepare general journal entries to record these transactions.


Definitions:

Independent Expenditure

Money spent by individuals or groups to support or oppose political candidates or issues, without coordinating directly with candidates or their campaigns.

Benefit Corporations

A type of for-profit corporate entity, which includes positive impact on society, workers, the community, and the environment in addition to profit as its legally defined goals.

Profitable

A financial state where revenues exceed expenses, generating a positive financial gain from business operations.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights and interests in the company.

Related Questions