Question

Make a General Journal from the information below

9/1 Kevin Diaz invested 50000 cash into his new business along with an 80000 piece of land to build on one day

9/2 Purchased 1 year of liability insurance for 2000

9/5 Kevin Diaz hired an employee and owes that employee 400 for work completed

9/7 Signed a 1-year lease for office space costing 700 per month

9/8 Purchased a 500 Ad to promote his business in a local diner. This purchase is nonrefundable

9/11 Bought a truck costing 20000 with a loan from a bank

9/12 Purchased 3500 worth of inventory on account

9/15 Utility bill came in for 230 to be paid at a later date

9/16 Paid the employee what was owed and also gave an advance of 100 to be paid back next day

9/18 Performed a job for 7500 plus tax and collected the whole balance

9/19 Received a payment of 1000 from a customer for work to be performed at a later date

9/25 Performed an 8000 job plus tax but only collected 5550. This job consisted of the sale of inventory for 1900 that had a cost of 800

9/27 Had to pay 200 for a noise ordinance

9/28 Bought 2500 worth of supplies on account

9/29 interest of 150 has accrued on the bank loan

9/30 Kevin realizes the truck has depreciated by 1000, he only has 200 worth of supplies on hand, and also recognizes that some of the insurance has expired

Answer 1

Prepare journal entries as follows:

Date	General Journal	Debit	Credit
September
1	Cash	$50,000
	Land	$80,000
	Common stock		$130,000
2	Prepaid Insurance	$2,000
	Cash		$2,000
5	Salaries expense	$400
	Salaries payable		$400
7	No entry
8	Advertising Expense	$500
	Cash		$500
11	Truck	$20,000
	Note payable		$20,000
12	Inventory	$3,500
	Accounts payable		$3,500
15	Utility Expense	$230
	Utility payable		$230
16	Salary in advance	$100
	Salaries payable	$400
	Cash		$500
18	Cash	$7,500
	Service revenue		$7,500
19	Cash	$1,000
	Unearned service revenue		$1,000
25	Cash	$5,550
	Accounts receivable ($8000-$5550)	$2,450
	Sales		$1,900
	Service revenue ($8000-$1900)		$6,100
	COGS	$800
	Inventory		$800
27	Noise ordinance (Fines)	$200
	Cash		$200
28	Supplies	$2,500
	Accounts payable		$2,500
29	Interest expense	$150
	Interest payable		$150
30	Depreciation expense	$1,000
	Accumulated depreciation-truck		$1,000
30	Supplies expense	$2,300
	Supplies ($2500-$200)		$2,300
30	Insurance expense	$166.67
	Prepaid Insurance ($2000/12)		$166.67