Exercise A 

 Prepare the journal entry required for each of the following transactions:
1. Cash was received for services performed for customers, $1,200.
2. Services were performed for customers on account, $4,200.
Exercise B Prepare the journal entry required for each of the following transactions:
1. Common stock was issued for $ 100,000.
2. Purchased machinery for cash, $ 30,000.
Exercise C Prepare the journal entry required for each of the following transactions:
1. Capital stock was issued for $ 200,000 cash.
2. A $ 30,000 loan was arranged with a bank. The bank increased the company’s
checking account by $ 30,000 after management of the company signed a written
promise to return the $ 30,000 in 30 days.
3. Cash was received for services performed for customers, $ 700.
4. Services were performed for customers on account, $ 1,200.
Exercise D For each of the following unrelated transactions, give the journal entry to
record the transaction. Then show how the journal entry would be posted to T-accounts.
You need not include explanations or account numbers.
1. Capital stock was issued for $ 100,000 cash.
2. Salaries for a period were paid to employees, $ 24,000.
3. Services were performed for customers on account, $ 40,000.
Exercise E  Prepare journal entries to record each of the following transactions for
Sanchez Company. Use the letter of the transaction in place of the date. Include an
explanation for each entry.
1. Capital stock was issued for cash, $ 300,000.
2. Purchased trucks by signing a note bearing no interest, $ 210,000.
3. Earned service revenue on account, $ 4,800.
4. Collected the account receivable resulting from transaction (c), $ 4,800.
5. Paid the note payable for the trucks purchased, $ 210,000.
6. Paid utilities for the month in the amount of $ 1,800.
7. Paid salaries for the month in the amount of $ 7,500.
8. Incurred supplies expenses on account in the amount of $ 1,920.
9. Purchased another truck for cash, $ 48,000.
10. Performed delivery services on account, $ 24,000.