Question

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

1.		Owner invested $60,000 in exchange for common stock of the corporation.
2.		Hired an employee to be paid $400 per week, starting tomorrow.
3.		Paid two years’ rent in advance, $7,200.
4.		Paid the worker’s weekly wage.
5.		Recorded service revenue earned and received for the week, $1,500.

Answer 1

Transaction	General Journal	Debit	Credit
1	Cash	$60,000
	Common Stock		$60,000
2	No entry
3	Prepaid Rent	$7,200
	Cash		$7,200
4	Salaries and Wages Expense	$400
	Cash		$400
5	Cash	$1,500
	Service Revenue		$1,500