Question

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transaction (Credit account titles are automatically Indented when amoune is entered. Do not Indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) Owner invested $58,500 in exchange for common stock of the corporation Hired an employee to be paid $400 per week, starting tomorrow. Paid two years' rent in advance. $7.400. Paid the worker's weekly wage Recorded service revenue earned and received for the week $2,500. 2. 3. 4. 5. No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5.

Answer 1

Answer

--Required journal entries

No	Accounts title	Debit	Credit
1	Cash	$58,500
	Common Stock		$58,500
	(to record investment in stock)
2	[No entry]
	[No entry]
3	Prepaid Rent	$7,400
	Cash		$7,400
	(to record rent paid in advance)
4	Wages expense	$400
	Cash		$400
	(to record wage for week paid)
5	Cash	$2,500
	Service Revenue		$2,500
	(to record revenue received)