Question

Prepare journal entries for the January 2018 transactions 1-6

1	02-Jan	Stockholders invest an additional $18,000 in the business
2	02-Jan	Borrowed $10,000 from the bank. The principal repayment is due in 3 years and interest payments are due at the end of each year.
3	02-Jan	Purchased equipment for $9,000 on account.
4	03-Jan	Purchased supplies on account (did not pay cash) $800
5	07-Jan	Paid office rent of $600 for the month
6	11-Jan	Completed a consulting assignment and billed ABC Co. $1,700 for services rendered

Answer 1

Date	Account Name	Debit	Credit
Jan-02	Cash	$18000
	Common stock		$18000
	(To record issue of common stock)
Jan-02	Bank	$10000
	Bank Loan		$10000
	(To record the receipt of bank loan)
Jan-02	Equipment	$9000
	Accounts Payable		$9000
	(To record the Purchase of Equipment)
Jan-03	Supplies	$800
	Accounts Payable		$800
	( To record the purchase of supplies)
Jan-07	Office Rent	$600
	Cash		$600
	(To record the payment of office rent)
Jan-11	Accounts receivable	$1700
	Service Revenue		$1700
	(To record the service revenue)