Question

I. Recording Transactions in General Journal and posting them to the corresponding Ledger Accounts. Prepare the journal entries for the following transactions in the General Journal. (507) In December 2018, Mary Tone organized a corporation to provide package delivery services. The company, called Tone Deliveries, Inc., began operations immediately. Transactions during the one of December were as follows: Dec. 2 Dec. 4 Dec. 5 Dec. 9 Dec. 15 The corporation issued 40,000 shares of capital stock to Mary Tone in exchange for $80,000 cash. Purchased a truck for $45,000. Made a $15,000 cash down payment and issued a note payable for the remaining balance. Paid Sloan Properties $2,500 to rent office space for five months. Billed customers $11,300 for services for the first half of December. Paid $7,100 in salaries earned by employees during the first half of December Collected $3,800 of the amounts billed to customers on December 9. Received $34,400 from customers for services to be performed in the future. Recorded $7,500 in salaries earned by employees during the second half of the month, Purchased fuel for $250 which will last for several months. Dec.20 Dec.26 Dec.29 Dec.30

Answer 1

Journal entries

Dec. 2	Cash	$ 80,000
	Common stock		$ 80,000
	(Issue of 40,000 common stock @ $2 each)
Dec. 4	Truck	$ 45,000
	Cash		$ 15,000
	Note payable		$ 30,000
	(Purchase of truck)
Dec. 5	Prepaid rent (2500*4/5)	$    2,000
	Rent expense	$        500
	Cash		$    2,500
	(Rent for 5 months paid including current month rent)
Dec. 9	Accounts receivable	$ 11,300
	Service revenue		$ 11,300
	(Sevice revenue recognized for 1st half of December)
Dec. 15	Salaries expense	$    7,100
	Cash		$    7,100
	(Salaries paid for 1st half of December)
Dec. 20	Cash	$    3,800
	Accounts receivable		$    3,800
	(Cash received from customer)
Dec. 26	Cash	$ 34,400
	Unearned revenue		$ 34,400
	(Advance received from a customer for future services)
Dec. 29	Salaries expense	$    7,500
	Salaries payable		$    7,500
	(Salaries accounted for end half of December)
Dec. 30	Fuel stock	$        250
	Cash		$        250
	(Purchase of fuel)

Cash					Common stock
Beg.bal.					Beg.bal.
Common stock	80,000		Dec.2		Cash		80,000	Dec.2
Truck		15,000	Dec.4
Prepaid rent		2,000	Dec.5
Rent expense		500	Dec.5
Salaries expense		7,100	Dec.15
Accounts receivable	3,800		Dec.20
Unearned revenue	34,400		Dec.26
Fuel stock		250	Dec.30
End. Bal.	93,350				End. Bal.		80,000
Truck					Note payable
Beg.bal.					Beg.bal.
Cash	15,000		Dec.4		Truck		30,000	Dec.4
Note payable	30,000		Dec.4
End. Bal.	45,000				End. Bal.		30,000
Prepaid rent					Rent expense
Beg.bal.					Beg.bal.
Cash	2,000		Dec.5		Cash	500		Dec.5
End. Bal.	2,000	-			End. Bal.	500	-
Accounts receivable					Service revenue
Beg.bal.					Beg.bal.
Service reveneu	11,300		Dec.9		Accounts reveivable		11,300	Dec.9
Cash		3,800	Dec.20
End. Bal.	7,500				End. Bal.		11,300
Salaries expense					Unearned revenue
Beg.bal.					Beg.bal.
Cash	7,100		Dec.15		Cash		34,400	Dec.26
Cash	7,500		Dec.29
End. Bal.	14,600	-			End. Bal.		34,400
Salaries payable					Fuel stock
Beg.bal.					Beg.bal.
Salaries expense		7,500	Dec.29		Cash	250		Dec.30
End. Bal.	-	7,500			End. Bal.	250