Question

structions On June 1, 2019, Kris Storey established an interior decorating business, Eco-Centric Designs. During the month, Kris completed June 1 Kris transferred cash from a personal bank account to an account to be used for the business, $26,500. 1 6 Paid rent for period of June 1 to end of month, $3,000 Purchased office equipment on account, $12,900 8 Purchased a van for $30,800 paying $6,200 cash and giving a note payable for the remainder. 10 Purchased supplies for cash, $1,560. 12 Received cash for job completed, $7,900. 15 Paid annual premiums on property and casualty insurance, $2,000. 23 Recorded jobs completed on account and sent invoices to customers, $12,330 24 Received an invoice for van expenses, to be paid in June, $1,300 Enter the following transactions on Page 2 of the two-column journal

Answer 1

Required journal entries for the month of June are:

Date	General Journal	Debit	Credit
June 1	Cash	$26500
	Kris Capital		$26500
	(for capital contributed by Kris)
June 1	Rent expense	$3000
	Cash		$3000
	(for rent paid for June)
June 6	Office equipment	$12900
	Accounts payable - Office equipment		$12900
	(for office equipment purchased)
June 8	Van	$30800
	Cash		$6200
	Notes payable		$24600
	(for van purchased)
June 10	Supplies	$1560
	Cash		$1560
	(for supplies purchased)
June 12	Cash	$7900
	Service revenue		$7900
	(for cash received towards job completed)
June 15	Insurance	$167
	Prepaid insurance	$1833
	Cash		$2000
	(for annual property & casualty insurance premium paid)
June 23	Accounts receivable	$12330
	Service revenue		$12330
	(for jobs completed and revenue recognized)
June 24	Van or delivery expenses	$1300
	Accounts payable		$1300
	(for van expenses for June)
June 29	Utilities expense	$3450
	Cash		$3450
	(for utilities expense paid)
June 29	Miscellaneous expense	$1670
	Cash		$1670
	(for miscellaneous expense paid)
June 30	Cash	$7700
	Accounts receivable		$7700
	(for cash received)