Question

Carl brown decided to establish an advertising agency to be known as Brown Advertising Inc. Brown's business transactions for the first month of operations ending June 30, 2022 were as follows. Journalize Brown's business transactions using Journal Paper. Include explanations.

June

1. Stockholders invested $40,000 cash in business in exchange for common stock

2.Paid office rent for one month $1600

2. Purchased office equipment on account $11,700

4. Paid cash for office supplies, $700

6 Paid telephone bill, $425

12. received $5120 cash for advertising fees earned.

15. paid $4000 on accounts for payable balance

20. received 3200 cash for advertising fees earned

25 paid 2200 wages to the office secretary

30 paid 5000 in cash dividends.

Answer 1

Date	General Journal	Debit	Credit
Jun-01	Cash	$ 40,000
	Common Stock		$ 40,000
	(To record issuance of common stock for cash)
Jun-02	Rent expense	$    1,600
	Cash		$    1,600
	(To record payment of rent for the month)
Jun-02	Office equipment	$ 11,700
	Accounts payable		$ 11,700
	(To record purchase of office equipment on account)
Jun-04	Office supplies	$        700
	Cash		$        700
	(to record purchase of office supplies for cash)
Jun-06	Utilities expense / Telephone expense	$        425
	Cash		$        425
	(To record cash payment for telephone bill)
Jun-12	Cash	$    5,120
	Advertising fees earned		$    5,120
	(To record cash received from advertising fees)
Jun-15	Accounts payable	$    4,000
	Cash		$    4,000
	(To record payment of cash on account)
Jun-20	Cash	$    3,200
	Advertising fees earned		$    3,200
	(To record cash received from advertising fees)
Jun-25	Wages expenses	$    2,200
	Cash		$    2,200
	(To record payment of wages for the month)
Jun-30	Dividends	$    5,000
	Cash		$    5,000
	(To record payment of dividends)

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