Birdy Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Miscellaneous Expense.

Question

Journalize the following selected transactions for January 20Y2 in a two-column journal. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank.

Date Transactions
Jan. 1. Paid rent for the month, $5,700.
4. Paid advertising expense, $3,650.
5. Paid cash for supplies, $1,560.
6. Purchased office equipment on account, $24,000.
12. Received cash from customers on account, $7,820.
20. Paid creditor on account, $2,290.
27. Paid cash for miscellaneous expenses, $990.
30. Paid utility (heating) bill for the month, $360.
31. Fees earned and billed to customers for the month, $52,100.
31. Paid utility (electricity) bill for the month, $630.
31. Paid dividends, $4,000.

Answer 1

Here are the journal entries for the selected transactions for Birdy Consulting Co. for January 20Y2:

Date          Account Titles and Explanation               Debit        Credit
------------------------------------------------------------------------------------
Jan. 1       Rent Expense                                    5,700
              Cash                                                          5,700
              (Paid rent for the month)

Jan. 4       Advertising Expense                             3,650
              Cash                                                          3,650
              (Paid advertising expense)

Jan. 5       Supplies                                         1,560
              Cash                                                          1,560
              (Paid cash for supplies)

Jan. 6       Office Equipment                                24,000
              Accounts Payable                                                 24,000
              (Purchased office equipment on account)

Jan. 12      Cash                                             7,820
              Accounts Receivable                                              7,820
              (Received cash from customers on account)

Jan. 20      Accounts Payable                                2,290
              Cash                                                          2,290
              (Paid creditor on account)

Jan. 27      Miscellaneous Expense                             990
              Cash                                                            990
              (Paid cash for miscellaneous expenses)

Jan. 30      Utilities Expense                                 360
              Cash                                                            360
              (Paid utility (heating) bill for the month)

Jan. 31      Accounts Receivable                             52,100
              Fees Earned                                                    52,100
              (Fees earned and billed to customers for the month)

Jan. 31      Utilities Expense                                 630
              Cash                                                            630
              (Paid utility (electricity) bill for the month)

Jan. 31      Dividends                                        4,000
              Cash                                                          4,000
              (Paid dividends)

Make sure to confirm the total debits equal total credits for each entry as part of your accounting process.