Need help with a few Journal entries

RunRickyRun

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May 1, 2010
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Hey everyone,

This is for a study guide for my final exam coming up. I turned it in to be checked, and here are the ones given back to me to correct. I want to make sure I have everything 100% correct so when I study for the final exam, I know the practice problems are correct atleast.

Record the following transactions on the journal paper provided. Indicate no entry if appropriate. Omit explanations.
6) Borrowed $9,000 from City Bank for 5 years and signed a promissory note with an annual interest rate of 6%.
7) Purchased a 4-month insurance policy, $2,400.
9) Received $1,500 from customers who paid in advance for winterizing their plants and sprinkler systems in January and February.
30) Received but did not pay the utility bill for telephone, $150.

On 6, I debited cash at $108 and credited Accounts Receivable for $108. I took 9000 x 6% / 5 = 108. That (108) is wrong though. Any help?

On 7, I debited and credit $600 by taking 2400 / 4 = 600. The 600 is wrong though. Would the answer be just the $2,400? I divided by 4 because it's a 4 month policy.

On 9, I debited Cash and Credited Accounts Receivable. Professor said to debit a liability account. Accounts payable maybe?

On 30, I debited Utilities Expense and credited Notes Payable. I think Utilities Expense is correct, but Notes Payable is not. Any help on the correct title of the debit would be?

Thanks a bunch!
 
6) Borrowed $9,000 from City Bank for 5 years and signed a promissory note with an annual interest rate of 6%.

$9,000: Debit Cash, Credit Loans payable

7) Purchased a 4-month insurance policy, $2,400.

$2,400: Debit Prepaid expenses, Credit Cash

9) Received $1,500 from customers who paid in advance for winterizing their plants and sprinkler systems in January and February.

$1,500 : Debit Cash, Credit Prepaid Revenue

30) Received but did not pay the utility bill for telephone, $150.

No entry required (Entry should be made on day paid; that's "usual" for small amounts...)
 
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