Terrapin company engages in the following external transactions for november. purchase equipment in exchange for cash of $22,400. provide services to customers and receive cash of $6,000. pay the current month's rent of $1,700. purchase office supplies on account for $1,000. pay employee salaries of $1,700 for the current month. required: record the transactions. terrapin uses the following accounts: cash, supplies, equipment, accounts payable, service revenue, rent expense, and salaries expense.

Purchase equipment in exchange for cash of $22,400

Debit   Equipment account    $22,400

Credit  Cash account              $22,400

Being entries to record the purchase of equipment for cash

Provide services to customers and receive cash of $6,000

Debit   Cash account                                  $6,000

Credit  Service Revenue account              $6,000

Being entries to recognize revenue earned from service rendered to customer.

Pay the current month's rent of $1,700

Debit   Rent expense account                   $1,700

Credit  Service Revenue account              $1,700

Being entries to recognize the payment of rent expense.

Purchase office supplies on account for $1,000

Debit   Supplies account                            $1,000

Credit  Cash account                                  $1,000

Being entries to recognize the payment for office supplies.

Pay employee salaries of $1,700 for the current month

Debit   Salaries Expense account              $1,700

Credit  Cash account                                  $1,700

Being entries to recognize the payment of employee's salaries.

Explanation:

Information given about Terrapin

To record these transactions, the following entries will be posted

Purchase equipment in exchange for cash of $22,400

Debit   Equipment account    $22,400

Credit  Cash account              $22,400

Being entries to record the purchase of equipment for cash

Provide services to customers and receive cash of $6,000

Debit   Cash account                                  $6,000

Credit  Service Revenue account              $6,000

Being entries to recognize revenue earned from service rendered to customer.

Pay the current month's rent of $1,700

Debit   Rent expense account                   $1,700

Credit  Service Revenue account              $1,700

Being entries to recognize the payment of rent expense.

Purchase office supplies on account for $1,000

Debit   Supplies account                            $1,000

Credit  Cash account                                  $1,000

Being entries to recognize the payment for office supplies.

Pay employee salaries of $1,700 for the current month

Debit   Salaries Expense account              $1,700

Credit  Cash account                                  $1,700

Being entries to recognize the payment of employee's salaries.

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