Question

Journalize the following: 1. Janl 1, 2017: ABC issue 2,000 common shares of $1 par stock for $30 per share 2. Jan 3, 2017: ABC collect $50,000 cash for work to be done later in the year 3. Feb 1, 2017: ABC pay $12,000 for a 1 year insurance policy, effective immediately 4. March 1, 2017: ABC signs a note to borrow $24,000. The loan will be repaid on March 1, 2018, along with all interest (at 12% per year) 5. March 15, 2017: ABC receive utility bill of $200 6. March 30, 2017: ABC pays the utility bill

Answer 1

Date	Account Title	Debit	Credit
Jan 1, 2017	Cash a/c Dr	60,000
	To, common stock		2,000
	To, other paid in capital		58,000
Jan 3, 2017	Cash a/c Dr	50,000
	To, deferred revenue		50,000
Feb 1, 2017	Prepaid Insurance a/c Dr	12,000
	To, cash		12,000
March 1, 2017	Cash a/c Dr	24,000
	To, note payable		24,000
March 15, 2017	Utility Expenses	200
	To, utility expense payable		200
March 30, 2017	Utility expense payable a/c Dr	200
	To, cash		200
august 1, 2017	Supplies asset a/c Dr	600
	To, cash		600
December 31, 2017	Supplies Expenses	400
	To, Supplies asset		400
December 31, 2017	Deferred Revenue a/c Dr	50,000
	To, Revenue a/c		50,000
December 31, 2017	Insurance Expense a/c Dr	11,000
	To, prepaid Expense		11,000
December 31, 2017	Interest Expense a/c Dr	2,400
	To, Interest payable		2,400