Question

Indigo Corporation has the following transactions during August of the current year. Aug. 1 Issues shares of common stock to investors in exchange for $10,400. Pays insurance in advance for 3 months, $1,880. 16 Receives $800 from clients for services rendered. 27 Pays the secretary $500 salary. 4 Journalize the transactions. (If no entry is required, select "No Entry for the account titles and enter o 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 . MacBook Air

Answer 1

The journal entries are provided below

Journal Entries
Date	Particulars	Debit $	Credit $
01 April 2020	Cash A/C -Dr	10400
	To Common Share Capital A/C		10400
	(Being common stock issued in exchange)
04 April 2020	Prepaid Insurance A/C -Dr	1880
	To Cash A/C		1880
	(Being insurance paid in advance for 3 months)
16 April 2020	Cash A/C - Dr	800
	To Sales A/C		800
	(Being revenue for service rendered. You can also use Service A/C instead of sales)
27 April 2020	Salary A/C -Dr	500
	To Cash A/C		500
	(Paid Salary to secretory)