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Waltham Oil

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Submitted By retro1986
Words 1132
Pages 5
Waltham Oil and Lube Center, Inc.

Question 1

The journal entries are:

1) $40,000 Capital contribution

Cash 40,000

Capital 40,000

2) $40,000 Deposit with National

Deposit – National 40,000

Cash 40,000

3) $6,000 furniture purchase

Furniture 6,000

Cash 6,000

4) $10,000 Capital contribution

Cash 10,000

Capital 10,000

5) $1,200 Insurance payment (12 months)

Prepaid Insurance 1,200

Cash 1,200

6) $35,450 deductions from deposit

Oil and grease inventory 6,320

Operating supplies and uniforms 4,130

Equipment 25,000

Deposit 35,450

7) $1500 Lease payment

Lease expense 1,500

Cash 1,500

8) $49,800 Equipment payable

Equipment 49,800

Equipment payable 49,800

9) $108,600 Bank deposits

Cash 108,600

Parking revenue 3,300

Services revenue 105,300

10) $8,230 Inventory purchases (oil and grease)

Inventory 8,230

Cash 8,230

11) $34,560 Payroll payments

Payroll expense 34,560

Cash 34,560

12) $1700 Utilities payments

Utilities expense 1,700

Cash 1,700

13) $6,600 miscellaneous payments

Miscellaneous expenses 6,600

Cash 6,600

14) $26,400 Lease payments

Lease expense 26,400

Cash 26,400

15) $2,490 Equipment payables payments

Equipment payable 2,490

Cash 2,490

16) $4,500 Withdrawals (Knight)

Withdrawals 4,500

Cash 4,500

17) $340 Receivable – parking

Accounts receivable 340

Parking Revenues 340

18) $730 Receivable – local merchant

Accounts receivable 730

Service Revenues 730

19) $2100 Unpaid payroll

Payroll expense 2100

Accrued payroll 2100

20) $350

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