Selected transactions for Sophie's Dog Care are as follows during the month of March:March 1: Paid monthly rent of $1,270.3: Performed services for $150 on account.5: Performed services for cash of $80.8: Purchased equipment for $635. The company paid cash of $85 and the balance was on account.12: Received cash from customers billed on March 3.14: Paid wages to employees of $555.22: Paid utilities of $76.24: Borrowed $1,590 from Grafton State Bank by signing a note.27: Paid $230 to repair service for plumbing repairs.28: Paid balance amount owed from equipment purchase on March 8.30: Paid $1,910 for six months of insurance. Journalize the transactions.

See answers and explanation below.

Explanation:

The journal entries will look as follows:

Date           Account Title                        Dr ($)                 Cr ($)            

March 1      Rent expenses                       1,270

                  Cash                                                                   1,270

                  (To record payment of monthly rent.)                              

March 3      Accounts receivable               150

                  Service revenue                                                  150

                   (To record services performed on account.)                  

March 5      Cash                                          80

                  Service revenue                                                   80

                  (To record services performed for cash.)                          

March 8      Equipment                               635

                   Cash                                                                     85

                   Acct payable - Equip. (w.1)                                550

                   (To record purchase of equipment.)                                  

March 12      Cash                                        150

                    Accounts receivable                                          150

                    (To record cash from customers billed on March 3.)        

March 14      Wages expenses                    555

                     Cash                                                                  555

                     (To record payment of monthly rent.)                              

March 22      Utilities expenses                     76

                     Cash                                                                    76

                     (To record payment for utilities.)                                        

March 24     Cash                                      1,590

                    Note payable                                                  1,590

                    (To record borrowing from Grafton State Bank.)              

March 27      Plumbing repair exp.             230

                     Cash                                                                  230

                     (To record payment for Plumbing repair.)                          

March 27      Acct payable - Equip. (w.1)    550

                     Cash                                                                 550

                     (To record balance paid for equipt purchased on March 8.)  

March 30      Insurance expenses (w.2)   318.33

                     Insurance prepaid (w.3)     1,591.67

                     Cash                                                                 1,910

                     (To record payment for six months insurance.)                    

Workings:

w.1: Account payable - Equipment = Equipment cost - Cash paid = $635 - $85 = $550

w.2: Insurance expenses for March = Cash paid / 6 months = $1,910 / 6 = $318.33

w.3: Insurance prepaid = Cash paid - Insurance expenses for March = $1,910 - $318.33 = $1,591.67

the correct option is c

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