Question

Chapter 2 Quiz 2 (a) Started business by issuing 10,000 shares of common stock for $23,000 (b) Hired Rebecca as an administrative assistant, promising to pay her $2,100 every two weeks. (c) Rented a building for three years at $550 per month and paid six months' rent in advance. (d) Purchased equipment for $5,500 cash. (e) Purchased $1,900 of supplies on account i) Provided services to customers for $7,300 cash. (g) Paid employees' salaries. $5.700. (h) Paid for supplies purchased in item (e). 00 Paid $870 for current advertising in a local newspaper Ü Paid utility bill of $1,400 for the current month. 00:42:30 View transaction list Journal entry worksheet < 1 2 3 10 8 9 4 5 6 7 Started business by issuing 10,000 shares of common stock for $23,000. Note: Enter debits before credits Debit Credit General Journal Transaction 2 of 13 < Prev Next > H: Mc Graw Hill

Answer 1

Required journal entries are:

Transaction	General Journal	Debit	Credit
a	Cash	$230000000
	Common stock		$230000000
	(for common stock issued for cash)
b	No entry
c	Prepaid rent	$3300
	Cash		$3300
	(for six month's advance rent paid)
d	Equipment	$5500
	Cash		$5500
	(for equipment purchased)
e	Supplies	$1900
	Accounts payable		$1900
	(for supplies purchased)
f	Cash	$7300
	Service revenue		$7300
	(for services provided)
g	Salaries expense	$5700
	Cash		$5700
	(for salaries paid)
h	Accounts payable	$1900
	Cash		$1900
	(for payment made for outstanding payables)
i	Advertising expense	$870
	Cash		$870
	(for advertising expense)
j	Utility expense	$1400
	Cash		$1400
	(for utility bill paid)