Bratt Plumbing Company had the following transactions for June — Paid 550 rent month — 175 one insurance — Collected account 255 services provided May This was billed and

Bratt Plumbing Company had the following transactions for June.

June 1 Paid $550 for rent for the month of June.

2 Paid $175 for one month of insurance.

5 Collected an account of $1,255 for plumbing services provided in May. This account was billed and correctly recorded in May.

9 Provided Jeff Dupuis, a potential customer, with an estimate of $5,000 for plumbing work that will be performed in July if the customer hires Bratt Plumbing.

14 Paid $675 for supplies purchased on account in May. The purchase in May had been correctly recorded.

17 Billed Rudy Holland $1,420 for plumbing work done.

19 Jeff Dupuis agreed to hire Bratt Plumbing (see the June 9 transaction) and gave Bratt Plumbing a down payment of $1,000.

29 Purchased $1,575 of equipment on account.

30 Paid an employee $850.

30 Paid D. Bratt, the company owner, $1,250.

Instructions

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For each transaction, prepare a basic analysis and a debit/credit analysis, and journalize the transaction. Use the format shown in BE2–8.

SOLUTION

Basic Analysis	The expense account Rent Expense is increased by $550. The asset account Cash is decreased by $550.	The expense account Rent Expense is increased by $550. The asset account Cash is decreased by $550.	The expense account Rent Expense is increased by $550. The asset account Cash is decreased by $550.	The expense account Rent Expense is increased by $550. The asset account Cash is decreased by $550.	The expense account Rent Expense is increased by $550. The asset account Cash is decreased by $550.
Debit/Credit Analysis	Debits increase expenses: debit Rent Expense $550.	Debits increase expenses: debit Rent Expense $550.	Debits increase expenses: debit Rent Expense $550.	Debits increase expenses: debit Rent Expense $550.	Debits increase expenses: debit Rent Expense $550.
Debit/Credit Analysis	Credits decrease assets: credit Cash $550.	Credits decrease assets: credit Cash $550.	Credits decrease assets: credit Cash $550.	Credits decrease assets: credit Cash $550.	Credits decrease assets: credit Cash $550.
Journal	June 1	Rent Expense		550
Entry		Cash			550
		Paid June rent.	Paid June rent.	Paid June rent.

Basic Analysis	The expense account Insurance Expense is increased by $175. The asset account Cash is decreased by $175.	The expense account Insurance Expense is increased by $175. The asset account Cash is decreased by $175.	The expense account Insurance Expense is increased by $175. The asset account Cash is decreased by $175.	The expense account Insurance Expense is increased by $175. The asset account Cash is decreased by $175.	The expense account Insurance Expense is increased by $175. The asset account Cash is decreased by $175.
Debit/Credit Analysis	Debits increase expenses: debit Insurance Expense $175.	Debits increase expenses: debit Insurance Expense $175.	Debits increase expenses: debit Insurance Expense $175.	Debits increase expenses: debit Insurance Expense $175.	Debits increase expenses: debit Insurance Expense $175.
Debit/Credit Analysis	Credits decrease assets: credit Cash $175.	Credits decrease assets: credit Cash $175.	Credits decrease assets: credit Cash $175.	Credits decrease assets: credit Cash $175.	Credits decrease assets: credit Cash $175.
Journal	June 2	Insurance Expense		175
Entry		Cash			175
		Paid one month ofinsurance.	Paid one month ofinsurance.	Paid one month ofinsurance.

Basic Analysis	The asset account Cash is increased by $1,255. The asset account Accounts Receivable is decreased by $1,255.	The asset account Cash is increased by $1,255. The asset account Accounts Receivable is decreased by $1,255.	The asset account Cash is increased by $1,255. The asset account Accounts Receivable is decreased by $1,255.	The asset account Cash is increased by $1,255. The asset account Accounts Receivable is decreased by $1,255.	The asset account Cash is increased by $1,255. The asset account Accounts Receivable is decreased by $1,255.
Debit/Credit	Debits increase assets: debit Cash $1,255.	Debits increase assets: debit Cash $1,255.	Debits increase assets: debit Cash $1,255.	Debits increase assets: debit Cash $1,255.	Debits increase assets: debit Cash $1,255.
Analysis	Credits decrease assets: credit Accounts Receivable $1,255.	Credits decrease assets: credit Accounts Receivable $1,255.	Credits decrease assets: credit Accounts Receivable $1,255.	Credits decrease assets: credit Accounts Receivable $1,255.	Credits decrease assets: credit Accounts Receivable $1,255.
Journal	June 5	Cash		1,255
Entry		Accounts Receivable			1,255
		Collected cash on account.	Collected cash on account.	Collected cash on account.

Basic Analysis

June 9: An accounting transaction has not occurred. A debit/credit analysis is not needed because there is no accounting entry.

Basic Analysis	The liability account Accounts Payable is decreased by $675. The asset account Cash is decreased by $675.	The liability account Accounts Payable is decreased by $675. The asset account Cash is decreased by $675.	The liability account Accounts Payable is decreased by $675. The asset account Cash is decreased by $675.	The liability account Accounts Payable is decreased by $675. The asset account Cash is decreased by $675.	The liability account Accounts Payable is decreased by $675. The asset account Cash is decreased by $675.
Debit/Credit Analysis	Debits decrease liabilities: debit Accounts Payable $675.	Debits decrease liabilities: debit Accounts Payable $675.	Debits decrease liabilities: debit Accounts Payable $675.	Debits decrease liabilities: debit Accounts Payable $675.	Debits decrease liabilities: debit Accounts Payable $675.
Debit/Credit Analysis	Credits decrease assets: credit Cash $675.	Credits decrease assets: credit Cash $675.	Credits decrease assets: credit Cash $675.	Credits decrease assets: credit Cash $675.	Credits decrease assets: credit Cash $675.
Journal	June 14	Accounts Payable		675
Entry		Cash			675
		Paid cash on account.	Paid cash on account.	Paid cash on account.

Basic Analysis	The asset account Accounts Receivable is increased by $1,420. The revenue account Service Revenue is increased by $1,420.	The asset account Accounts Receivable is increased by $1,420. The revenue account Service Revenue is increased by $1,420.	The asset account Accounts Receivable is increased by $1,420. The revenue account Service Revenue is increased by $1,420.	The asset account Accounts Receivable is increased by $1,420. The revenue account Service Revenue is increased by $1,420.	The asset account Accounts Receivable is increased by $1,420. The revenue account Service Revenue is increased by $1,420.
Debit/Credit Analysis	Debits increase assets: debit Accounts Receivable $1,420.	Debits increase assets: debit Accounts Receivable $1,420.	Debits increase assets: debit Accounts Receivable $1,420.	Debits increase assets: debit Accounts Receivable $1,420.	Debits increase assets: debit Accounts Receivable $1,420.
Debit/Credit Analysis	Credits increase revenues: credit Service Revenue $1,420.	Credits increase revenues: credit Service Revenue $1,420.	Credits increase revenues: credit Service Revenue $1,420.	Credits increase revenues: credit Service Revenue $1,420.	Credits increase revenues: credit Service Revenue $1,420.
Journal	June 17	Accounts Receivable		1,420
Entry		Service Revenue			1,420
		Performed services on account for	Performed services on account for	Performed services on account for	Performed services on account for
		Rudy Holland.	Rudy Holland.	Rudy Holland.

Basic Analysis	The asset account Cash is increased by $1,000. The liability account Unearned Revenue is increased by $1,000.	The asset account Cash is increased by $1,000. The liability account Unearned Revenue is increased by $1,000.	The asset account Cash is increased by $1,000. The liability account Unearned Revenue is increased by $1,000.	The asset account Cash is increased by $1,000. The liability account Unearned Revenue is increased by $1,000.	The asset account Cash is increased by $1,000. The liability account Unearned Revenue is increased by $1,000.
Debit/Credit	Debits increase assets: debit Cash $1,000.	Debits increase assets: debit Cash $1,000.	Debits increase assets: debit Cash $1,000.	Debits increase assets: debit Cash $1,000.	Debits increase assets: debit Cash $1,000.
Analysis	Credits increase liabilities: credit Unearned Revenue $1,000.	Credits increase liabilities: credit Unearned Revenue $1,000.	Credits increase liabilities: credit Unearned Revenue $1,000.	Credits increase liabilities: credit Unearned Revenue $1,000.	Credits increase liabilities: credit Unearned Revenue $1,000.
Journal	June 19	Cash		1,000
Entry		Unearned Revenue			1,000
		Received advance from J. Dupuis	Received advance from J. Dupuis	Received advance from J. Dupuis	Received advance from J. Dupuis
		for future services.	for future services.	for future services.

Basic Analysis	The asset account Equipment is increased by $1,575. The liability account Accounts Payable is increased by $1,575.	The asset account Equipment is increased by $1,575. The liability account Accounts Payable is increased by $1,575.	The asset account Equipment is increased by $1,575. The liability account Accounts Payable is increased by $1,575.	The asset account Equipment is increased by $1,575. The liability account Accounts Payable is increased by $1,575.	The asset account Equipment is increased by $1,575. The liability account Accounts Payable is increased by $1,575.
Debit/Credit	Debits increase assets: debit Equipment $1,575.	Debits increase assets: debit Equipment $1,575.	Debits increase assets: debit Equipment $1,575.	Debits increase assets: debit Equipment $1,575.	Debits increase assets: debit Equipment $1,575.
Analysis	Credits increase liabilities: credit Accounts Payable $1,575.	Credits increase liabilities: credit Accounts Payable $1,575.	Credits increase liabilities: credit Accounts Payable $1,575.	Credits increase liabilities: credit Accounts Payable $1,575.	Credits increase liabilities: credit Accounts Payable $1,575.
Journal	June 29	Equipment		1,575
Entry		Accounts Payable			1,575
		Purchased equipment on account.	Purchased equipment on account.	Purchased equipment on account.	Purchased equipment on account.

Basic Analysis	The expense account Salaries Expense is increased by $850. The asset account Cash is decreased by $850.	The expense account Salaries Expense is increased by $850. The asset account Cash is decreased by $850.	The expense account Salaries Expense is increased by $850. The asset account Cash is decreased by $850.	The expense account Salaries Expense is increased by $850. The asset account Cash is decreased by $850.	The expense account Salaries Expense is increased by $850. The asset account Cash is decreased by $850.
Debit/Credit Analysis	Debits increase expenses: debit Salaries Expense $850.	Debits increase expenses: debit Salaries Expense $850.	Debits increase expenses: debit Salaries Expense $850.	Debits increase expenses: debit Salaries Expense $850.	Debits increase expenses: debit Salaries Expense $850.
Debit/Credit Analysis	Credits decrease assets: credit Cash $850.	Credits decrease assets: credit Cash $850.	Credits decrease assets: credit Cash $850.	Credits decrease assets: credit Cash $850.	Credits decrease assets: credit Cash $850.
Journal	June 30	Salaries Expense		850
Entry		Cash			850
		Paid employee.	Paid employee.	Paid employee.

Basic Analysis	The owner’s equity account D. Bratt, Drawings is increased by $1,250. The asset account Cash is decreased by $1,250.	The owner’s equity account D. Bratt, Drawings is increased by $1,250. The asset account Cash is decreased by $1,250.	The owner’s equity account D. Bratt, Drawings is increased by $1,250. The asset account Cash is decreased by $1,250.	The owner’s equity account D. Bratt, Drawings is increased by $1,250. The asset account Cash is decreased by $1,250.	The owner’s equity account D. Bratt, Drawings is increased by $1,250. The asset account Cash is decreased by $1,250.
Debit/Credit Analysis	Debits increase drawings: debit D. Bratt, Drawings $1,250.	Debits increase drawings: debit D. Bratt, Drawings $1,250.	Debits increase drawings: debit D. Bratt, Drawings $1,250.	Debits increase drawings: debit D. Bratt, Drawings $1,250.	Debits increase drawings: debit D. Bratt, Drawings $1,250.
Debit/Credit Analysis	Credits decrease assets: credit Cash $1,250.	Credits decrease assets: credit Cash $1,250.	Credits decrease assets: credit Cash $1,250.	Credits decrease assets: credit Cash $1,250.	Credits decrease assets: credit Cash $1,250.
Journal	June 30	D. Bratt, Drawings		1,250
Entry		Cash			1,250
		Paid D. Bratt, the company owner.	Paid D. Bratt, the company owner.	Paid D. Bratt, the company owner.	Paid D. Bratt, the company owner.