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Junk trader is an online company that specializes in matching buyers and sellers of used items. Buyers and sellers can purchase a membership with Junk trader, which provides them advance notice of potentially attractive offers. Prepare journal entries for the following transactions, which occurred during a recent month, and determine Junk trader's preliminary net income.
a. Junk trader provided online advertising services for another company for $ 200 on account.
b. On the last day of the month, Junk trader paid $ 50 cash to run an ad promoting the company's services. The ad ran that day in the local newspaper.
c. Received $ 200 cash in membership fees for the month from new members.
d. Received an electricity bill for $ 85 for usage this month. The bill will be paid next month.
e. Billed a customer $ 180 for helping sell some junk. Junk trader expects to receive the customer's payment by the end of next month.
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