Question

Exercise 3-7 (Part Level Submission) 

Selected transactions for Front Room, an interior decorator corporation, in its first month of business, are as follows

 1. Issued stock to investors for $14,000 in cash.

 2. Purchased used car for $10,100 cash for use in business.

 3. Purchased supplies on account for $260.

 4. Billed customers $5,010 for services performed. 

 5. Paid $160 cash for advertising start of the business.

 6. Received $1,150 cash from customers billed in transaction (4).

 7. Paid creditor $250 cash on account.

 8. Paid dividends of $380 cash to stockholders. 

Journalize the transactions (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

The transactions are journalized and uploaded in the image format.

Please do not forget like the answer if you are satisfied with the answer.

No. Credit Debit $ 14,000 1 $ 14,000 2 $ 10,100 $ 10,100 3 $ $ 260 $ 260 4 $ 5,010 $ 5,010 Account Titles and Explanation Cash Common Stock Being amount received for issuing common stock Equipment Cash Being used car purchased for business use Supplies Accounts Payable Being supplies purchased on account Accounts Receivable Service Revenue Being services performed billed to customers Advertising Expense Cash Being cash paid for advertising start of business Cash Accounts Receivable Being cash received from the customers Accounts Payable Cash Being amount paid to creditor Dividends Cash Being dividends paid to stockholders 5 $ $ 160 $ 160 6 $ 1,150 $ 1,150 7 $ 250 $ 250 8 $ 380 $ $ 380