[deezerdoo]

July 1 Bills are sent to clients for services provided in June in the amount of $800.
July 8 First Bank loans the company $2,500. The company will pay back the loan in Aug.
July 9 Office Supply Corp. delivers furniture ($1,060) and expendable office supplies ($160), leaving an invoice for $1,220.
July 15 Payment is made to Office Supply Corp. for the furniture and office supplies delivered on July 9.
July 23 A $430 bill for electricity for the month of June is received and will be paid on its due date in August.
July 31 Salaries are paid to employees in the amount of $850.


1. The journal entry to record the July 9 transaction will include a credit of 1,220 to?
I say Accounts Payable

2. What is total amount of expenses that should appear on July's income statement?
I say $850

3. Assuming a beginning cas balance of $4,300, what is the balance in the Cas account at July31?
I say $4,730.

How did I do? Thanks for your help. Just looking for confirmation of my answers if I'm wrong could you please explain.

[CaptainForest]

1) Correct

[deezerdoo]

Thanks for the help. I'm assuming I'm wrong on the other two.

[goldenbutterfly]

2. Since office supplies are expendable, it has to be expensed as well.

3. correct.

[deezerdoo]

on # to the only choices I have are.

A. $430
B. $850
C. $1280
D. $1,440

If I use the $850 salary and the office supplies $160 that = $1010 if I add the $430 for the electric bill that totals $1,440 but that bill won't be paid until Aug so would that be right 1,440?

[goldenbutterfly]

If those are the choices, then you are correct. $430 electricity should have been recorded as June expense while office supplies will be expensed when consumed.

[jn_srish]

July 1 Bills are sent to clients for services provided in June in the amount of $800.
July 8 First Bank loans the company $2,500. The company will pay back the loan in Aug.
July 9 Office Supply Corp. delivers furniture ($1,060) and expendable office supplies ($160), leaving an invoice for $1,220.
July 15 Payment is made to Office Supply Corp. for the furniture and office supplies delivered on July 9.
July 23 A $430 bill for electricity for the month of June is received and will be paid on its due date in August.
July 31 Salaries are paid to employees in the amount of $850.


1. The journal entry to record the July 9 transaction will include a credit of 1,220 to?
I say Accounts Payable

2. What is total amount of expenses that should appear on July's income statement?
I say $850

3. Assuming a beginning cas balance of $4,300, what is the balance in the Cas account at July31?
I say $4,730.

How did I do? thanks for your help. Just looking for confirmation of my answers if I'm wrong could you please explain.

Mk

[deezerdoo]

Thanks for all your help.