Exercise 1: Journalizing transactions The following transactions occurred during

Exercise 1: Journalizing transactions
The following transactions occurred during the month of April for ABC Company:
April 1
Received $2,000 from a customer for services rendered.
Purchased $500 of supplies on account.
April 5
Paid $300 rent for the month.
April 10
Performed services for a customer and sent an invoice for $1,500.
April 15
Collected $1,000 from a customer on account.
Paid $400 for utilities.
April 20
Paid $500 for supplies that were purchased on account on April 1.
Paid $1,000 of salaries.
April 25
Received $500 in cash for consulting services.
Paid $200 for advertising.
April 30
Borrowed $5,000 from the bank by signing a note payable.
Journalize the transactions above using the following general ledger accounts:
Cash
Accounts Receivable
Supplies
Prepaid Rent
Utilities Expense
Salaries Expense
Advertising Expense
Interest Expense
Notes Payable
Service Revenue
Consulting Revenue
Solution:
April 1
Debit Cash
Credit Accounts Receivable
$2,000
Debit Supplies
Credit Accounts Payable
$500
April 5
Debit Prepaid Rent
Credit Cash
$300
April 10
Debit Accounts Receivable
Credit Service Revenue
$1,500
April 15
Debit Cash
Credit Accounts Receivable
$1,000
Debit Utilities Expense
Credit Cash
$400
April 20
Debit Accounts Payable
Credit Cash
$500
Debit Salaries Expense
Credit Cash
$1,000
April 25
Debit Cash
Credit Consulting Revenue
$500
Debit Advertising Expense
Credit Cash
$200
April 30
Debit Cash
Credit Notes Payable
$5,000
This is just one example of an accounting exercise. There are many other types of exercises that you can do to practice your accounting skills. Some other exercises might include:
Preparing financial statements
Adjusting journal entries
Analyzing financial statements
Identifying and correcting accounting errors
Applying accounting principles to real-world situations