You are presented with the following transactions for

Paddick Enterprises #8496

You are presented with the following transactions for Paddick Enterprises

You are presented with the following transactions for Paddick Enterprises Ltd. for the month of
February:

Feb. 2 Purchased supplies on account, $600.

3 Purchased equipment for $10,000 by signing a note due in three months.

6 Earned service revenue of $50,000. Of this amount, $30,000 was received in cash. The
balance was on account.

13 Paid $1,000 in dividends to shareholders.

18 A customer paid $2,000 in advance for services to be rendered in the future.

20 Paid the amount owing for the supplies purchased on February 2.

23 Collected $20,000 of the amount owing from the February 6 transaction.

24 Paid operating expenses for the month, $22,000.

25 The services for the customer who paid in advance on February 18 were performed.

27 Recorded salaries due to employees for work performed during the month, $14,000.

28 Paid interest of $100 on the note issued on February 3.

Instructions

For each transaction, indicate

(a) The basic type of account debited and credited (asset, liability, shareholders' equity);

(b) The specific account debited and credited (Cash, Service Revenue, etc.);

(c) Whether the specific account is increased or decreased.

Use the following format, in which the first transaction is given as an example:

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 (d) Prepare journal entries to record the above transactions.

You are presented with the following transactions for Paddick Enterprises

ANSWER
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