Question

PART 1: Journal Entries Smart Touch Learning began operations on December 1. Record the business' transactions for the month of December Explanations are not required. Refer to the Chart of Accounts for account titles. Smart Touch Learning began operations on December 1 by receiving $27,000 cash and furniture of a fair value of $11,000 from James Smith. The business issued Smith shares of common stock in exchange for this contribution Date Accounts Debit Credit Paid $1,600 cash for a four-month insurance policy. The policy begins December 1. Date Accounts Debit Credit Paid $S70 cash for office supplies, December 4. Date Accounts Debit Credit

Answer 1

	In the Books of Smart Touch Learning
Date	Account titles and explanation		Debit	Credit
Dec-01	Cash		$             27,000
	Furniture		$             11,000
	Common Stock			$         38,000
	(to common stock issued for cash and Furniture)
Dec-01	Prepaid Insurance		$               1,600
	Cash			$           1,600
	(to inurance paid in advance)
Dec-04	Offfice Supplies		$                  570
	Cash			$              570
	(to supplies acquired for cash)
Dec-12	Cash		$               3,000
	Service Revenue			$           3,000
	(to service provided to customer and cash received)
Dec-15	Accounts Receivable		$               4,500
	Service Revenue			$           4,500
	(to bill made for service provided to customer )
Dec-18	Salary expenses		$               2,300
	Cash			$           2,300
	(to salary paid to employees)
Dec-20	Cash		$             19,200
	Service Revenue			$         19,200
	(to service provided to customer and cash received)
Dec-22	Cash		$               5,700
	Unearned Service Revenue			$           5,700
	(cash received in advance for service to be provided in future)
Dec-23	Cash		$               4,500
	Accounts Recievable			$           4,500
	(to cash collcetd from customer)
Dec-27	Utilities expense		$                  340
	Utilities payable			$              340
	(to utilties bill received)
Dec-28	Accounts Receivable		$                  600
	Service Revenue			$              600
	(to service performed on account)
Dec-29	Rent expense		$               1,800
	Cash			$           1,800
	(to december rent paid in cash)
Dec-30	Accounts Payable		$                  340
	Cash			$              340
	(to amount received on account due)
Dec-31	Dividend		$               3,400
	Cash			$           3,400
	(to cash dividend paid to stockholder's)