Question

eyenne Corp. has the following transactions during August of the current year.

Aug. 1		Issues shares of common stock to investors in exchange for $10,090.
4		Pays insurance in advance for 3 months, $1,270.
16		Receives $700 from clients for services rendered.
27		Pays the secretary $490 salary.

Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date Aug. 1Aug. 4Aug. 16Aug. 27	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date Aug. 1Aug. 4Aug. 16Aug. 27	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date Aug. 1Aug. 4Aug. 16Aug. 27	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date Aug. 1Aug. 4Aug. 16Aug. 27	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

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Answer 1

Solution

Date	Account Titles and Explanation	Debit	Credit
Aug-01	Cash	$ 10,090.00
	Common stock		$ 10,090.00
	(To record issue of common stock)
Aug-04	Prepaid insurance	$    1,270.00
	Cash		$    1,270.00
	(to record payment for insurance)
Aug-16	Cash	$        700.00
	Service revenue		$        700.00
	(To record service revenue)
Aug-27	Salaries expense	$        490.00
	Cash		$        490.00
	(To record payment of salaries)

Insurance expense will not be recorded until insurance expires.