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Journalize the following selected transactions for October 20Y2 in a two-column journal. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank.

Innovative Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Miscellaneous Expense.

Transactions:

- Oct. 1: Paid rent for the month, [tex]\$4,200[/tex].
- Oct. 3: Paid advertising expense, [tex]\$2,670[/tex].
- Oct. 5: Paid cash for supplies, [tex]\$1,150[/tex].
- Oct. 6: Purchased office equipment on account, [tex]\$17,600[/tex].
- Oct. 12: Received cash from customers on account, [tex]\[tex]$5,730[/tex].
- Oct. 20: Paid creditor on account, [tex]\$[/tex]1,680[/tex].
- Oct. 27: Paid cash for miscellaneous expenses, [tex]\$730[/tex].
- Oct. 30: Paid telephone bill for the month, [tex]\$270[/tex].
- Oct. 31: Fees earned and billed to customers for the month, [tex]\$38,200[/tex].
- Oct. 31: Paid electricity bill for the month, [tex]\$460[/tex].
- Oct. 31: Paid dividends, [tex]\$2,900[/tex].

Journal Entries:

| Date | Account Titles and Explanation | Debit | Credit |
|-----------|--------------------------------|-------------|-------------|
| Oct. 1 | Rent Expense | [tex]\$4,200[/tex] | |
| | Cash | | [tex]\[tex]$4,200[/tex] |
| Oct. 3 | Advertising Expense | [tex]\$[/tex]2,670[/tex] | |
| | Cash | | [tex]\$2,670[/tex] |
| Oct. 5 | Supplies | [tex]\$1,150[/tex] | |
| | Cash | | [tex]\$1,150[/tex] |
| Oct. 6 | Office Equipment | [tex]\$17,600[/tex] | |
| | Accounts Payable | | [tex]\[tex]$17,600[/tex] |
| Oct. 12 | Cash | [tex]\$[/tex]5,730[/tex] | |
| | Accounts Receivable | | [tex]\$5,730[/tex] |
| Oct. 20 | Accounts Payable | [tex]\$1,680[/tex] | |
| | Cash | | [tex]\$1,680[/tex] |
| Oct. 27 | Miscellaneous Expense | [tex]\$730[/tex] | |
| | Cash | | [tex]\[tex]$730[/tex] |
| Oct. 30 | Utilities Expense | [tex]\$[/tex]270[/tex] | |
| | Cash | | [tex]\$270[/tex] |
| Oct. 31 | Accounts Receivable | [tex]\$38,200[/tex] | |
| | Fees Earned | | [tex]\$38,200[/tex] |
| Oct. 31 | Utilities Expense | [tex]\$460[/tex] | |
| | Cash | | [tex]\[tex]$460[/tex] |
| Oct. 31 | Dividends | [tex]\$[/tex]2,900[/tex] | |
| | Cash | | [tex]\$2,900[/tex] |



Answer :

GinnyAnswer
Certainly! Below is the detailed, step-by-step journalization for the specified transactions of Innovative Consulting Co. for October 20 Y 2, using a two-column journal.

Journal Entries for October:

1. October 1:
- Debit: Rent Expense: [tex]\( \$4,200 \)[/tex]
- Credit: Cash: [tex]\( \$4,200 \)[/tex]

The company paid rent, decreasing Cash and increasing Rent Expense.

2. October 3:
- Debit: Advertising Expense: [tex]\( \$2,670 \)[/tex]
- Credit: Cash: [tex]\( \$2,670 \)[/tex]

The company paid for advertising, decreasing Cash and increasing Advertising Expense.

3. October 5:
- Debit: Supplies: [tex]\( \$1,150 \)[/tex]
- Credit: Cash: [tex]\( \$1,150 \)[/tex]

The company paid for supplies, decreasing Cash and increasing Supplies.

4. October 6:
- Debit: Office Equipment: [tex]\( \$17,600 \)[/tex]
- Credit: Accounts Payable: [tex]\( \$17,600 \)[/tex]

The company purchased office equipment on account, increasing Office Equipment and increasing Accounts Payable.

5. October 12:
- Debit: Cash: [tex]\( \$5,730 \)[/tex]
- Credit: Accounts Receivable: [tex]\( \$5,730 \)[/tex]

The company received cash from customers on account, increasing Cash and decreasing Accounts Receivable.

6. October 20:
- Debit: Accounts Payable: [tex]\( \$1,680 \)[/tex]
- Credit: Cash: [tex]\( \$1,680 \)[/tex]

The company paid a creditor on account, decreasing Accounts Payable and decreasing Cash.

7. October 27:
- Debit: Miscellaneous Expense: [tex]\( \$730 \)[/tex]
- Credit: Cash: [tex]\( \$730 \)[/tex]

The company paid for miscellaneous expenses, decreasing Cash and increasing Miscellaneous Expense.

8. October 30:
- Debit: Utilities Expense: [tex]\( \$270 \)[/tex]
- Credit: Cash: [tex]\( \$270 \)[/tex]

The company paid the telephone bill, decreasing Cash and increasing Utilities Expense.

9. October 31:
- Debit: Accounts Receivable: [tex]\( \$38,200 \)[/tex]
- Credit: Fees Earned: [tex]\( \$38,200 \)[/tex]

The company billed customers for fees earned, increasing Accounts Receivable and increasing Fees Earned.

10. October 31:
- Debit: Utilities Expense: [tex]\( \$460 \)[/tex]
- Credit: Cash: [tex]\( \$460 \)[/tex]

The company paid the electricity bill, decreasing Cash and increasing Utilities Expense.

11. October 31:
- Debit: Dividends: [tex]\( \$2,900 \)[/tex]
- Credit: Cash: [tex]\( \$2,900 \)[/tex]

The company paid dividends, decreasing Cash and increasing Dividends.

Here's how the entries would look in a typical two-column journal format:

| Date | Account | Debit | Credit |
|---------|--------------------------------------------|---------|---------|
| Oct. 1 | Rent Expense | \[tex]$4,200 | | | | Cash | | \$[/tex]4,200 |
| Oct. 3 | Advertising Expense | \[tex]$2,670 | | | | Cash | | \$[/tex]2,670 |
| Oct. 5 | Supplies | \[tex]$1,150 | | | | Cash | | \$[/tex]1,150 |
| Oct. 6 | Office Equipment | \[tex]$17,600| | | | Accounts Payable | | \$[/tex]17,600|
| Oct. 12 | Cash | \[tex]$5,730 | | | | Accounts Receivable | | \$[/tex]5,730 |
| Oct. 20 | Accounts Payable | \[tex]$1,680 | | | | Cash | | \$[/tex]1,680 |
| Oct. 27 | Miscellaneous Expense | \[tex]$730 | | | | Cash | | \$[/tex]730 |
| Oct. 30 | Utilities Expense | \[tex]$270 | | | | Cash | | \$[/tex]270 |
| Oct. 31 | Accounts Receivable | \[tex]$38,200| | | | Fees Earned | | \$[/tex]38,200|
| Oct. 31 | Utilities Expense | \[tex]$460 | | | | Cash | | \$[/tex]460 |
| Oct. 31 | Dividends | \[tex]$2,900 | | | | Cash | | \$[/tex]2,900 |

These entries accurately reflect the journalization of Innovative Consulting Co.'s selected transactions for October 20 Y 2.

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