Question

Ember Landscaping Services Ltd. completed the following transactions during July 2019, its first month of operations:

July 1 Received cash of $100,000 and issued common shares.
2 Purchased equipment for $70,000 cash.
3 Purchased supplies on account, $800.
10 Performed landscaping services for customers on account, $7,900.
14 Paid $500 on accounts payable.
18 Collected cash from customers on account, $5,000.
23 Paid utilities expense, $300.
25 Performed landscaping services for customers and received cash of $2,500. 30 Paid the following expenses: Salary, $1,800; advertising, $250 and insurance, $400. 31 Declared and paid a cash dividend of $1,500.

Required: Record the transactions in the journal of Ember Landscaping Services Ltd. Key each transaction by date. Journal entry descriptions are not required.

Answer 1

| Credit Date July 01 Debit 100,000 $ $ 100,000 July 02 70,000 $ 70,000 July 03 800 $ 800 July 10 7,900 $ 7,900 July 14 500 s 500 July 18 General Journal Cash Common Stock Equipment Cash Supplies Accounts Payable Accounts Receivable Service Revenue Accounts Payable Cash Cash Accounts Receivable Utilities Expense Cash Cash Service Revenue Salaries Expense Advertising Expense Insurance Expense Cash Dividends Cash 5,000 5,000 July 23 300 300 July 25 2,500 $ 2,500 July 30 1,800 250 400 2,450 July 31 1,500 1,500