Question

July 1 Received $39,000 of cash and issued common stock to shareholders. July 3 Purchased supplies of $200 and equipment of $3,100, both on account. July 5 Painted a house for a customer, who paid $1,600 in cash. July 7 Purchased land for cash of $27,000. July 11 Performed painting services for a customer, who was billed for $900. The customer promised to pay the first week of August. July 16 Paid for the equipment purchased on July 3. July 17 Received and paid phone bill for $170. July 18 Received $450 from a customer on account. (i.e. the customer was paying off an account receivable he owed to the company) July 22 Paid water bill of $190. July 29 Painted a house for a customer, who paid $1,400 in cash. July 30 Paid employee salaries of $2,400. July 31 Declared and paid cash dividends of $6,500. a) Show all journal entries Student Painters would have to make during the month of July. (Hint: it might be easier to do parts [a] and [b] concurrently.)

Answer 1

Supplies Debit ($) Credit (S) 39000 39000 Jul-03 200 Jul-01 Jul-05 Stock of common stock Cash 39000 1600 450) 1400 Jul-18 200 200 Jul-29 Jul-03 Jul-07 Jul-16 Jul-17 Jul-22 Jul-30 Jul-31 200 27000 3100 170 190 2400 6500 Equipment 3100 Jul-03 3100 Bal. 2890 Bal. 3100 Answer: Date Accounts title and explanations Jul-01 Cash | Common Stock [To record the issue of common stock] Jul-03 Supplies Cash [To record the purchase of supplies] Jul-03 Equipment Accounts Payable [To record the purchase of Equipment on account] Jul-05 Cash Service Revenue [To record the service revenue) Jul-07 Land Cash [To record the purchase of land] Jul-11 Accounts receivable Service Revenue [To record the service revenue] Jul-16 Accounts Payable Cash [To record the payment to Accounts payable for equipment] 1600 Land 27000 Common Stock Jul-01 600 Jul-07 39000 27000 27000 39000 27000 Accounts Payable 3100 Jul-03 900 Jul-16 3100 1600 Service Revenue Jul-05 Jul-11 Jul-29 900 Bal. 1400 3100 3100 3900

Accounts Receivable Jul-11 900 Jul-18 Telephone Expenses Jul-17 170 450 170 Water Bill 1901 Salaries 2400 Jul-22 Jul-30 Bal. 190 Bal. 2400 Jul-17 Telephone Expenses Cash [To record the phone expenses paid) Jul-18 Cash Accounts Receivable [To record the cash received from AR] Jul-22 Water Bill Cash [To record the Water expenses paid] Jul-29 Cash Service Revenue (To record the service revenue] Jul-30 Salaries Cash [To record the salaries expenses paid] Jul-31 Dividends Cash [To record the dividend paid] 1400 1400 Dividend 6500 Jul-31 2400 2400 Bal. 6500 6500 6500

Student Painters Traial Balance For the month ended Jult 31 Credit($) Debit($) 2890 450 3100 27000 39000 Cash Accounts Receivables Equipment Land Accounts payable Common stock Dividends Service Revenue Telephone Expenses Water Bill Salaries Supplies Total 6500 3900 170 190 2400 200 42900 42900