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aejhargrave · Jan 13, 2009, 08:35 PM

How would I put these into journal entries? What gets debited and credited and which accounts do I use?

1. Paid $1,200 cash on a y-year insurance policy, effective July 1.
The adjusting entry for this is 1/12 of the policy expired July 31st of the same year.

2. Paid cash for gas and oil for month for truck of $200

3. Billed customers $2,500 for cleaning services

4. Paid $1,200 cash for employee salaries

5. services provided but unbilled and uncollected at July 31 were $1,100

6. Accrued but unpaid employee salaries were $400

pready · Jan 14, 2009, 01:18 PM

1. Debit Prepaid Insurance for 1,200
Credit Cash for 1,200

Adjusting entry:
Debit Insurance Expense for 600
Credit Prepaid Insurance for 600

2. Debit an Expense Account for 200
Credit Cash for 200

3. Debit Accounts Receivable for 2,500
Credit Cleaning Service Revenue for 2,500

4. Debit Salaries Expense for 1,200
Credit Cash for 1,200

5. Debit Accounts Receivable for 1,100
Credit Service Revenue for 1,100

6. Debit Salaries Expense for 400
Credit Salaries Payable for 400