solution

 

On April 1, Adventures Travel Agency began operations. The following transactions were completed during the month.

1. Shareholders invested $24,000 in the business in exchange for ordinary shares.

2. Obtained a bank loan for $7,000 by issuing a note payable.

3. Paid $11,000 cash to buy equipment.

4. Paid $1,200 cash for April office rent.

5. Paid $1,450 for supplies.

6. Purchased $600 of advertising in the Daily Herald, on account.

7. Performed services for $18,000: cash of $2,000 was received from customers, and the balance of $16,000 was billed to customers on account.

8. Declared and paid a cash dividend of $400.

9. Paid the utility bill for the month, $2,000.

10. Paid Daily Herald the amount due in transaction (6).

11. Paid $40 of interest on the bank loan obtained in transaction (2).

12. Paid employees’ salaries and wages, $6,400. 13. Received $12,000 cash from customers billed in transaction (7).

 

Instructions

Journalize the transactions. (Omit explanations).