Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 15

Identifying Transactions and Preparing Journal Entries
Katy Williams is the manager of Blue Light Arcade. The company provides entertainment for parties and special events. Prepare journal entries for the following events relating to the year ended December 31. If the event is not a transaction, write "no transaction."
a. Blue Light Arcade received $50 cash on account for a birthday party held two months ago.
b. Agreed to hire a new employee at a monthly salary of $3,000. The employee starts work next month.
c. Paid $2,000 for a table top hockey game purchased last month on account.
d. Repaid a $5,000 bank loan that had been outstanding for six months. (Ignore interest.)
e. The company purchased an air hockey table for $2,200, paying $1,000 cash and signing a short-term note for $1,200.