Stuart Corporation entered into the following transactions during the year ending December 31, Year 1:
1)Performed services for $26,000 cash2)Purchased $800 of supplies on account3)Purchased land for $95,000 cash4)Paid salary expense of $16,5005)Paid for $600 of the supplies purchased in event (2)6)Collected $15,000 in advance for services to be provided over the next 12 months7)Recognized $10,000 of revenue on the contract from event (6)8)Owed $5,500 of salaries expenses to employees for work done during December, Year 1, that will be paid during January, Year 2.
Required:Prepare the journal entries for these transactions and adjustments using the general journal format.

Question

Quizplus · Accepted Answer

The Answer of Stuart Corporation entered into the following transactions during the year ending December 31, Year 1:
1)Performed services for $26,000 cash2)Purchased $800 of supplies on account3)Purchased land for $95,000 cash4)Paid salary expense of $16,5005)Paid for $600 of the supplies purchased in event (2)6)Collected $15,000 in advance for services to be provided over the next 12 months7)Recognized $10,000 of revenue on the contract from event (6)8)Owed $5,500 of salaries expenses to employees for work done during December, Year 1, that will be paid during January, Year 2.
Required:Prepare the journal entries for these transactions and adjustments using the general journal format.

Stuart Corporation Entered into the Following Transactions During the Year