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Boyd Docker engaged in the following activities in establishing his photography studio, SnapShot!:

1. Opened a bank account in the name of SnapShot! and deposited $7,590 of his own money into this account in exchange for common stock.
2. Purchased photography supplies at a total cost of $920. The business paid $290 in cash, and the balance is on account.
3. Obtained estimates on the cost of photography equipment from three different manufacturers.

In what form (type of record) should Joel record these three activities? Prepare the entries to record the transactions.

Respuesta :

Tundexi

Answer:

In what form (type of record) should Joel record these three activities? Joel should record these three activities in the General Journal format as it is standardized.

                                           Journal Entries

S/N     Account Titles and Explanation          Debit     Credit

1.         Cash                                                       $7,590

                Common stock                                               $7,590

           (To record the investment)

2.        Supplies                                                  $920

                  Cash                                                               $290

                   Account  payable                                         $630

            (To record the purchase of supplies)

3.          No Entries                                                 -             -

           (This is because it is just an receiving of quotation)

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