Question

I. Journalize each transaction below: January 1: Stockholders invested $20,000 in exchange for common stock 2: Purchased supplies on account, $800 2: Purchased a 1 year insurance policy for $8,000 cash 2: Paid $12,000 in advance for rent 2: Signed a 7%, 12-month note at National Bank, 20,000 3: Received $5000 from customer for work to be completed at a future date 4: Received $2,000 for services provided 7: Paid utilities: $500 8: Incurred advertising costs on account, $1000 10: Billed customer for services provided, $7,500 12: Received $1000 from a customer who was previously billed

Answer 1

Date	Account	Debit	Credit
January 1	Cash Common Stock	20,000	20000
January 2	Supplies Accounts payables	800	800
January 2	Insurance Expenses Cash	8000	8000
January 2	Prepaid Rent Cash	12000	12000
January 2	Cash Notes Payable	20000	20000
January 3	Cash Unearned Revenue	5000	5000
January 4	Cash Service Revenue	2000	2000
January 7	Utility Expense Cash	500	500
January 8	Advertisement Expense Accounts Payable	1000	1000
January 10	Accounts Receivable Service Revenue	7500	7500
January 12	Cash Account Receivables	1000	1000

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