contestada

June 1 T. James, owner, invested $11,500 cash in Sustain Company in exchange for common stock. 2 The company purchased $4,500 of furniture made from reclaimed wood on credit. 3 The company paid $700 cash for a 12-month insurance policy on the re-claimed furniture. 4 The company billed a customer $3,500 in fees earned from preparing a sustainability report. 12 The company paid $4,500 cash toward the payable from the June 2 furniture purchase. 20 The company collected $3,500 cash for fees billed on June 4. 21 T.James invested an additional $10,500 cash in Sustain Company in exchange for common stock. 30 The company received $5,500 cash from a client for sustainability services for the next 3 months.Prepare general journal entries for the above transactions

Respuesta :

Zviko

Answer:

General Journal

June 1

Cash $11,500 (debit)

Common Stock $11,500 (credit)

Received Cash in exchange of common stock

June 2

Furniture $4,500 (debit)

Accounts Payable $4,500 (credit)

Purchased Furniture on credit

June 3

Prepaid Insurance $700 (debit)

Cash $700 (credit)

Paid Insurance in advance

June 4

Accounts Receivable $3,500 (debit)

Fees Earned $3,500 (credit)

Fees earned not yet paid

June 12

Accounts Payable $4,500 (debit)

Cash $4,500 (credit)

Payment made to suppliers

June 20

Cash $3,500 (debit)

Accounts Receivable $3,500 (credit)

Cash receipt from debtors

June 21

Cash $10,500 (debit)

Common Stock $10,500 (credit)

Received Cash In exchange of Common Stock

June 30

Cash $5,500 (debit)

Deferred Revenue $5,500 (credit)

Received Cash for services to be rendered

Explanation:

See the journals and their narrations prepared above.

Answer:

Entries are posted

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

                                                  DEBIT     CREDIT                

1-June  (Common Stock issued)

Cash                                         $11,500

Common stock                                          $11,500

2-June  (Furniture purchased on Credit)

Furniture                                  $4,500

Accounts Payable                                      $4,500

3-June  (Prepaid Insurance Paid)

Prepaid insurance                   $700

Cash                                                              $700

4-June  (Revenue earned)

Accounts Receivable              $3,500

Service Revenue                                          $3,500

12-June  (Paid for Outstanding balance in payables)

Accounts Payable                  $4,500

Cash                                                                $4,500

20-June  (Received from Accounts Receivables)

Cash                                       $3,500

Accounts Receivables                                     $3,500

21-June  (Common Stock issued)

Cash                                      $10,500

Common stock                                             $10,500

30-June  (Advance received for services to be performed in future)

Cash                                       $5,500

Unearned Service Revenue                         $5,500

Otras preguntas