Answer:
a)
1. Advertising costs, paid in cash, $1,160.
Dr Advertising expense 1,160
Cr Cash 1,160
2. Additional supplies acquired on account $4,460.
Dr Supplies 4,460
Cr Accounts payable 4,460
3. Miscellaneous expenses, paid in cash, $2,180.
Dr Miscellaneous expenses 2,180
Cr Cash 2,180
4. Cash collected from customers in payment of accounts receivable $12,130.
Dr Cash 12,130
Cr Accounts receivable 12,130
5. Cash paid to creditors for accounts payable due $12,570.
Dr Accounts payable 12,750
Cr Cash 12,750
6. Repair services performed during January: for cash $6,860; on account $9,040.
Dr Cash 6,860
Dr Accounts receivable 9,040
Cr Service revenue 15,900
7. Wages for January, paid in cash, $2,500.
Dr Wages expense 2,500
Cr Cash 2,500
8. Dividends during January were $2,520.
Dr Dividends 2,520
Cr Cash 2,520
b)
Debit Credit
Cash $6,080
Accounts Receivable $11,710
Supplies $17,760
Prepaid Rent $1,600
Equipment $19,200
Accounts Payable $7,610
Common Stock $31,000
Retained Earnings $10,200
Service revenue $15,900
Advertising expense $1,160
Miscellaneous expenses $2,180
Wages expense $2,500
Dividends $2,520
TOTALS $64,710 $64,710
