Question

Question 4 of 7 View Policies Current Attempt in Progress Ayayai Corp. has the following transactions during August of the current year. Aug. 1 Issues shares of common stock to investors in exchange for $10,000. Pays insurance in advance for 3 months, $1,000 16 Receives $700 from clients for services rendered. 27 Pays the secretary $450 salary. 4 Journalize the transactions. (If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit > e Textbook and Media List of Accounts

Answer 1

Date	Account titles and explanation		Debit	Credit
Aug-01	Cash		$             10,000
	Common Stock			$         10,000
	(to common stock issued for cash)
Aug-04	Prepaid Insurance		$               1,000
	Cash			$           1,000
	(Inusrance paid in advance for 3 months)
Aug-16	Cash		$                  700
	Service Revenue			$              700
	(cash received for service provided)
Aug-27	Salary expense		$                  450
	Cash			$              450
	(salary paid in cash to secretary)