Question

Х i More Info Jun 2 Sold $40,000 of common stock to Darryl Munro to start the construction business. 3 Paid monthly office rent, $1,500. 6 Paid cash for new construction equipment, $1,800. 8 Purchased office furniture on account, $2,000. 11 Purchased supplies on account, $200. 19 Performed service for a client on account, $1,800. 20 Paid utility expenses, $400. 28 Performed service for a client and received cash for the full amount of $2,000. Print Done

Answer 1

1	Journal Entry
Date	Account Title	Debit	Credit
2-Jun	Cash	$        40,000
	Common Stock		$                   40,000
	(Being common stock sold to Daryl Munro to start the construction business)
3-Jun	Office Rent	$          1,500
	Cash		$                      1,500
	(Being office rent paid)
6-Jun	Equipment	$          1,800
	Cash		$                      1,800
	(Being equipment purchased for cash)
8-Jun	Office Furniture	$          2,000
	Accounts payable		$                      2,000
	(Being office furniture purchased on account)
11-Jun	Supplies	$              200
	Accounts payable		$                         200
	(Being supplies purchased on account)
19-Jun	Accounts receivable	$          1,800
	Service Revenue		$                      1,800
	(Being services performed on account)
20-Jun	Utility Expenses	$              400
	Cash		$                         400
	(Being utility expenses paid)
28-Jun	Cash	$          2,000
	Service Revenue		$                      2,000
	(Being services performed for cash)

2 T-accounts Cash Date Particulars 2-Jun Owner's Equity Debit S Date 40,000 Particulars 3-Jun orice Rent Credit $ 1 500 28-Jun Service Revenue $ 2,000 6-Jun Equipment 20-Jun Utility Expenses 30-Jun By balclt $ $1 $ $ 1 800 400 38 300 42.000 $ 42.000 Accounts receivable Date Particulars 19-Jun Service Revenue Debit $ $ Date 1,800 1,800 Particulars 30-Jun By bal olf Credit $ $ 1.500 1.800 Supplies Date Date Particulars 11-Jun Accounts payable Debit $ $ Particulars 30-Jun By balclt 200 Credit $ $ 200 200 200 Equipment Date Particulars 6-Jun Accounts payable Debit $ $ Date 1,800 1,800 Particulars 30-Jun By balclt Credit $ 1 300 $ 1.800 Furniture Date Date Particulars B-Jun Accounts payable Debit S S 2.000 2.000 Particulars 30-Jun By balat Credit $ 2,000 $ 2.000 Accounts payable Date Particulars 30-Jun To balc/ Debit $ Date 2,200 Particulars 3-Jun Furniture 11-Jun Supplies Credit $ 2,000 $ 200 $ 2 200 $ 2,200 Common stoc Date Particulars 30-Jun To balt Debit 5 Date 40,000 Particulars 2-Jun Cash Credit $ 40,000 5 40,000 $ 40.000 Service Revenue Date Particulars 30-Jun To balct Debit $ Date 3,800 Particular 19-Jun Accounts receivable 28-Jun Cash Credit $ 1,800 $ 2.000 $ 3,800 S 3,800 Rent Expense Date Particulars 3-Jun Cash Debit $ $ Date 1.300 1.500 Particular 30-Jun By balc/ Credit $ 1,500 $ Utilities Expense Date Particulars 20-Jun Cash Debit $ $ Date 400 400 Particulars 30-Jun By bale/ Credit $ $ 400 400 Debit $ $ Credit 38,300 1,800 $ 2,200 3 Trial Balance Account Title Cash Accounts receivable Accounts payable Equipment Furniture Service Revenue Common Stock Rent Expense Supplies Utilities Expenses Total 1,800 2.000 $ $ 3,800 40,000 $ $ $ $ 1,500 200 400 45,000 46.000 3,300 4 Income Statement Revenue Expenses Rent Expense Utilities expense Total Expense Net income $ 1,500 400 1,900 1,900 $ Retained Earnings Opening balance Add: Net income Closing balance $ $ 1,900 1,900 Amount Balance Sheet Assets Cash Accounts receivable Equipment Furniture Supplies Total Amount Liabilities 33,300 Accounts payable $ 1,800 Common Stock $ 1,800 Retained Earnings $ 2.000 $ 200 $ 44,100 Total 2.200 40.000 1.900 $ 44,100