Question

Please help with correct answer and explaination if possible, thx!(:

2. During June of the current year, Joan Star started Star Service Company. Record the following transactions in proper form: A. Issued capital stock to Joan Star in exchange for $20,000 B. Paid a month's rent of $1,500 C. Purchased office supplies on account for $700 D. Received $400 cash for services performed E. Paid wages in the amount of $1,350 F. Paid $280 to creditors on account G. Billed customers $625 for services performed on account H. Pald dividends of $900 I

Answer 1

In the books of Star Service Company Date Particulars DR. CR. June 구 A- Cash 20,000 Common Stock 20,000 ( Being stocks issued) B- Rent 1,500 Cash ( Being rent paid) 1,500 C- 700 Office Supplies 700 A/P (Being office supplies purchased)

D- Cash 400 Service Revenue ( Being Cash received) 400 E- Wages Expense 1,350 Cash ( Being Wages paid) 1,350 F- 280 A/P 280 Cash ( Being Cash paid to the creditor) G- A/R 625 Service Revenue 625 ( Being billed the customer for the services)
In your question only record the transactions is mentioned. So I’m providing you the journal entries as preparing general journal is the first step to record the entries.

Rules - 1- We debit asset account when it increases.

2- When Expense Increases, it gets debited.

3- When Liabilities Increase, it gets credited.

These are the simple rules to follow for passing the entries.

H- Dividends 900 Cash ( Being Dividends paid) 900 Total 25,755 25,755 Here, A/P= Accounts Payable A/R= Accounts Receivable