Transaction Entries Final Clean, a firm providing house-cleaning services, began business on April 1. The following accounts in its general ledger are needed to record the transactions for April: Cash; Accounts Receivable; Supplies; Prepaid Van Lease; Equipment; Accounts Payable; Notes Payable Common Stock; Retained Earnings; Dividends; Cleaning Fees Earned; Wage Expense; Advertising Expense; and Fuel Expense.
April 1 Randy Smith invested $14,000 cash to begin the business; he received common stock for his investment.
2 Paid six months' lease on a van, $2,850.
3 Borrowed $10,000 from a bank and signed a note payable agreeing to repay the $10,000 in one year plus 10 percent interest.
3 Purchased $5,500 of cleaning equipment; paid $2,000 down with the remainder due within 30 days.
4 Purchased cleaning supplies for $4,300 cash.
7 Paid $350 for newspaper advertisements to run during April.
21 Billed customers for services, $3,500.
23 Paid $1,500 on account to cleaning equipment firm (see April 3 transaction).
28 Collected $2,300 from customers on account.
29 Randy Smith received a $1,000 cash dividend.
30 Paid wages for April, $1,750.
30 Paid service station for gasoline used during April, $350.
Accounting Equation Journal Entries
Using the accounting equation, record each of the transactions in columnar format. Use negative signs with your answers below, when appropriate.
Cash + Accounts Receivable + Supplies + Prepaid Van Lease + Equipment = Accounts Payable + Notes Payable + Common Stock + Retained Earnings