Question

Using the journal entry form that is in files prepare the correct journal entries for each of the transactions listed below. Use the Chart of Accounts for the account title and numbers. Transactions Date 08/01 Issued capital stock for cash $150,000 08/03 Borrowed $40,000 from the bank on a note 08/04 Purchased cleaning equipment for $25,000 cash 08/06 Performed services for customers on account for $16.000 08/07 Paid rent for the month in the amount of $2.800 08/08 Collected $16,000 from services performed on August 6 08/15 Received utilities bill for $500 08/30 Paid employee salaries for $6.000 08/30 Declared and paid dividends for $2,000

Answer 1

	Journal entries:
Date	Accounts title and explanations				Debit $	Credit $
1-Aug	Cash Account Dr.				150000
	Capital Stock					150000
3-Aug	Cash Account Dr.				40000
	Note payable					40000
4-Aug	Equipment Account Dr.				25000
	Cash Account					25000
6-Aug	Accounts receivable Dr.				16000
	Service revenue					16000
7-Aug	Rent expense Account Dr.				2800
	Cash account					2800
8-Aug	Cash Account Dr.				16000
	Accounts receivable					16000
15-Aug	Utilities expense Account Dr.				500
	Cash account					500
30-Aug	Salaries expense Account Dr.				6000
	Cash account					6000
30-Aug	Dividend Expense Account Dr.				2000
	Cash account					2000