BE 158
Journalize the following transactions for Mercado Company for June 2011, the company’s first month of operations. You may omit explanations for the transactions.
1.Purchased equipment on account for $4,000.
2.Billed customers $5,000 for services performed.
3.Made payment of $1,500 on account for equipment purchased earlier in month.
4.Collected $2,400 on customer accounts.
BE 159
Use the information in BE 158 to answer the following questions.
1.What is the balance in Accounts Payable at June 30, 2011?
2.What is the balance in Accounts Receivable at June 30, 2011?
BE 160
The transactions of the Buy It Now Store are recorded in the general journal below. You are to post the journal entries to T-accounts.
General Journal
DateAccount TitlesDebitCredit
2011
Aug.5Accounts Receivable2,800
Service Revenue2,800
10Cash4,000
Service Revenue4,000
19 Rent Expense1,000
Cash1,000
25Cash1,400
Accounts Receivable1,400