Selected transactions for Grouper’s Dog Care are as follows during the month of March. March 1 Paid monthly rent of $1,030.
3 Performed services for $120 on account.
5 Performed services for cash of $65.
8 Purchased equipment for $515. The company paid cash of $70 and the
balance was on account.
12 Received cash from customers billed on March 3.
14 Paid wages to employees of $450.
22 Paid utilities of $62.
24 Borrowed $1,290 from Grafton State Bank by signing a note.
27 Paid $190 to repair service for plumbing repairs.
28 Paid balance amount owed from equipment purchase on March 8.
30 Paid $1,550 for six months of insurance.
Journalize the transactions.

Answer and Explanation:

The Journal entries are shown below:-

1. Rent expense Dr, $1,030

         To cash $1,030

(Being cash paid is recorded)

2. Account receivable $120

        To service revenue $120

(Being service revenue is recorded)

3. Cash $120

       To Service revenue $120

(Being cash received is recorded)

4. Equipment Dr, $515

Cash Dr,  $70

       To Accounts payable $445

(Being cash received is recorded)

5. Cash Dr $120

        To account receivable $120

(Being cash received  is recorded)

6. Wage expense $450

        To cash $450

(Being cash paid is recorded)

7. Utility expense Dr, $62

         To cash $62

(Being cash paid is recorded)

8. Cash Dr, $1,290

           To notes payable $1,290

(Being cash received is recorded)

9. Repair & maintenance Dr, $190

            To cash $190

(Being cash paid is recorded)

10. Accounts payable Dr, $445

              To cash $445

(Being cash paid is recorded)

11. Prepaid Insurance Dr, $1,550

             To cash $1,550

(Being cash paid is recorded)

explanation:

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