Boilermaker house painting company

1. sep 3 paint houses in the current month for $20,000 on account.

2. sep 8 purchase painting equipment for $21,000 cash.

3. sep 12 purchase office supplies on account for $3,500.

4. sep 15 pay employee salaries of $4,200 for the current month.

5. sept 19 purchase advertising to appear in the current month for $1,000 cash.

6. sep 22 pay office rent of $5,400 for the current month.

7. sep 26 receive $15,000 from customers in (1) above.

8. sep 30 receive cash of $6,000 in advance from a customer who plans to have his house painted in the following month.

a) record each transaction. the company uses the following accounts: cash, accounts receivable, supplies, equipment, accounts payable, deferred revenue, common stock, retained earnings, service revenue, salaries expense, advertising expense, rent expense.

Explanation:

The journal entries are shown below:

1. Account receivable A/c Dr $20,000

          To Deferred revenue A/c $20,000

(Being the paint house on account is recorded)      

2. Equipment A/c Dr $21,000

         To Cash A/c $21,000

(Being the equipment is purchased for cash)

3. Supplies A/c Dr $3,500

            To Accounts Payable A/c $3,500

(Being the office supplies are purchased on credit basis)

4. Salaries expense A/c Dr $4,200

        To Cash A/c $4,200

(Being the employees salaries are paid for cash)

5. Advertising expense A/c Dr $1,000

        To Cash A/c $1,000

(Being the advertising are purchase for cash)

6.  Rent expense A/c $5,400

                To Cash A/c $5,400

(Being the rent is paid for cash)

7. Cash A/c Dr $15,000

      To Account receivable A/c $15,000

(Being the cash is received)

8. Cash A/c Dr $6,0000

      To Deferred revenue $6,000

(Being the cash is received)

i mean they dont have to

c.

explanation:

regressive tax taxes the poor and less of the wealthy. this the rich get richer and the poor get more poor. this would create a large wealth gap.