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10 November, 03:48

Elain's Inflatables earns service revenue by providing party planning services and inflatable playscapes. Elaine?'s Inflatables is organized as a sole proprietorship and owned by Elaine Gibson. During the past? month, Elaine?'s Inflatables has the following? transactions:a. Gibson contributed $10,000 to the business in exchange for capital. b. Purchased equipment for $5,000 on account. c. Paid $400 for office supplies. d. Earned and received $2,500 cash for service revenue. e. Paid $400 for wages to employees. f. Gibson withdrew $1,000 cash. g. Earned $1,000 for services provided. Customer has not yet paid. h. Paid $1,000 for rent. i. Received a bill for $250 for the monthly utilities. The bill has not yet been paid.

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  1. 10 November, 04:07
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    The accounting entry for each transaction is given below.

    Gibson contributed $10,000 to the business in exchange for capital.

    Debit Cash Asset $10,000

    Credit Capital $10,000

    b. Purchased equipment for $5,000 on account.

    Debit equipment Asset $5,000

    Credit Payable Liability $5,000

    c. Paid $400 for office supplies.

    Debit payable $400

    Credit Cash Asset $400

    d. Earned and received $2,500 cash for service revenue.

    Debit Cash Asset $2,500

    Credit Income $2,500

    e. Paid $400 for wages to employees.

    Debit Wages expense $400

    Credit Cash Asset $400

    f. Gibson withdrew $1,000 cash

    Debit Capital $1,000

    Credit Cash Asset $1,000

    . g. Earned $1,000 for services provided. Customer has not yet paid.

    Debit Receivable $1,000

    Credit Service Income $1,000

    h. Paid $1,000 for rent.

    Debit Rent expense $1,000

    Credit Cash Asset $1,000

    i. Received a bill for $250 for the monthly utilities. The bill has not yet been paid.

    Debit Utility expense $250

    Credit payable $250
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