Transactions and Journal Entries Are Shown Below $\$ 45,000$ In the Business

question 22

Essay

Transactions and journal entries are shown below.Read the transaction and determine if the correct journal entry
has been made.If a correction is necessary,use the ruling method to make the correction.
a Bert Hollis, the owner, invested $\$ 45,000$ in the business.

$\begin{array}{ll}\text { Cash } & 45,000 \\\text { Bert Hollis, Drawing } && 45,000\end{array}$

b. Hollis paid the monthly rent of $\$ 1,275$ .

$\begin{array}{ll}\text { Cash } & 1,275 \\\text { Rent Expense } && 1,275\end{array}$

c. Hollis paid cash to Union Electric for monthly utilities, $\$ 250$ .

$\begin{array}{llr} \text { Utilities Expense } &250 \\ \text {Accounts Payable } &&250\\\end{array}$

d. Hollis made payment on account for office supplies purchased previously, $\$ 100$ .

$\begin{array}{llr} \text { Office Supplies } &100\\ \text { Accounts Payable } &&100\\\end{array}$

e. A customer made a payment on account, $\$ 1,100$ .
$\begin{array}{ll}\text { Accounts Receivable } & 1,100 \\\text { Service Fees } && 1,100 \end{array}$

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Definitions:

Hippocampus

A major component of the brain in the temporal lobe, playing critical roles in memory formation, organization, and retrieval.

Declarative Memory

A type of long-term memory that allows people to recall facts and events.

Procedural Memory

A type of long-term memory involved in learning and retaining the skills of performing tasks without conscious awareness of the learning process.

Analogous

Similar or comparable in some respects, allowing for understanding or drawing conclusions based on the similarities between them.