Record each of the following transactions in general

Question

Recording events in the general journal and the effect on financial statements

Required

Record each of the following transactions in general journal form and then show the effect of the transaction in the horizontal statements model. The first transaction is shown as an example.

a. Received $4,000 cash for services to be performed at a later date.

b. Purchased supplies for $2,400 cash.

c. Performed $50,000 worth of services on account.

d. Charged $2,000 on account for operating expense.

e. Collected $27,000 cash on accounts receivable.

f. Paid $700 on accounts payable.

g. Paid $6,800 cash in advance for an insurance policy.

h. Recorded the adjusting entry to recognize $4,500 of insurance expense.

i. Recorded the adjusting entry to recognize $800 of accrued interestrevenue.