Crazy Mountain Tours Co. is a travel agency. The nine transactions recorded by Crazy Mountain Tours during May 20Y2, its first month of operations, are indicated in the following T accounts:

Question

Cash
Transaction Debit amount Transaction Credit amount
(1) 50,000 (2) 4,000
(7) 13,100 (3) 10,000
(4) 6,175
(6) 6,000
(9) 1,500

Equipment
Transaction Debit amount Transaction Credit amount
(3) 30,000

Dividends
Transaction Debit amount Transaction Credit amount
(9) 1,500

Accounts Receivable
Transaction Debit amount Transaction Credit amount
(5) 20,500 (7) 13,100

Accounts Payable
Transaction Debit amount Transaction Credit amount
(6) 6,000 (3) 20,000

Service Revenue
Transaction Debit amount Transaction Credit amount
(5) 20,500

Supplies
Transaction Debit amount Transaction Credit amount
(2) 4,000 (8) 2,200

Common Stock
Transaction Debit amount Transaction Credit amount
(1) 50,000

Operating Expenses
Transaction Debit amount Transaction Credit amount
(4) 6,175
(8) 2,200
Prepare the nine journal entries from which the postings were made. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank.

TransactionAccountDebitCredit
(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

Answer 1

Based on the provided T-account information for Crazy Mountain Tours Co., we can prepare the journal entries for each transaction. Here are the journal entries corresponding to each transaction:

Transaction 1:

Common Stock                  50,000
    Cash                                       50,000

Transaction 2:

Supplies                           4,000
    Cash                                       4,000

Transaction 3:

Equipment                        30,000
    Accounts Payable                           20,000
    Cash                                       10,000

Transaction 4:

Operating Expenses                 6,175
    Cash                                       6,175

Transaction 5:

Accounts Receivable             20,500
    Service Revenue                          20,500

Transaction 6:

Accounts Payable                  6,000
    Cash                                        6,000

Transaction 7:

Cash                                13,100
    Accounts Receivable                     13,100

Transaction 8:

Operating Expenses                2,200
    Supplies                                    2,200

Transaction 9:

Dividends                          1,500
    Cash                                       1,500

These entries encapsulate the transactions as reflected in their respective T-accounts.