The following transactions occurred for Watson Technology Solutions:
View the transactions. View the journal entries.
Read the requirement.
Account # 110
May 1: The business received cash of $120,000 and issued common stock to Zach Watson. Post to the four-column accounts in this step. In the next step, complete the Posting Reference columns in the journal
Cash
Balance
Transactions
Date
Posting
Reference
Debit
Credit
Debit
Credit
May 1
The business received cash of $120,000 and issued common stock to Zach Watson.
May 1
110
120,000
May 2
Purchased supplies on account, $500.
Common Stock
Account # 310
May 4
Paid $58,000 cash for building and land. The building had a fair market value of
$50,000.
Balance
Date
Posting
Reference Debit
May 6
Performed services for customers and received cash, $2,900.
Credit
Debit
Credit
May 9
Paid $400 on accounts payable
May 1
310
120,000
May 17
Performed services for customers on account, $3,000.
May 19
Paid rent expense for the month, $500.
Requirement
May 20
Received $1,200 from customers for services to be performed next month.
May 21
Paid $1,100 for advertising in next month's IT Technology magazine.
May 23
Received $2,700 cash on account from a customer.
May 31
Incurred and paid salaries, $1,300.
Post the journal entries to the four-column accounts using the following
account numbers: Cash, 110; Accounts Receivable, 120; Supplies, 130;
Prepaid Advertising, 140; Land, 150; Building, 160, Accounts Payable, 210,
Unearned Revenue, 220; Common Stock, 310, Service Revenue, 410,
Rent Expense, 510; and Salaries Expense; 520. Determine the balance in the
account after each transaction. Assume that the journal entries were recorded on
page 10 of the journal. Make sure to complete the Posting Reference columns in
the journal and ledger.
