Question

7 Part A: Prepare in good form the following journal entries: 5 June 1 The company received cash of $500,000 and issued common stock to the shareholders. 2 Purchased supplies on account for $2,000 8 9 Borrowed $21,000 from the bank and signed a long-term note payable@ 8% interest for 4 years to upgrade its payment system 10 Rendered services billed at $8,000 and received cash of $8,000. 12 Billed IU $ 16,500 on account. 15 Employees worked two weeks and were paid salaries of $10,000. 22 Paid amount due for supplies. 30 Paid monthly rent of $500. 30 The Board of Directors declared and paid dividends of $1,000. 15 16 17 Part B: Prepare a trial balance 18 19 Part A: Prepare in good form the following journal entries: Part B: Prepare a 20 Journals & Trial Balance Financial Statements + 9 10 11 12 13 14 - II Type here to search E HD 99. 5 6 7 8 R T
part A

Answer 1

Based on the information available in the question, we can answer as follows:-

Date	Particulars	Amount	Amount
June 1	Cash a/c	500,000
	To Common stock a/c		500,000
	(To record the exchange of cash for common stock)
June 2	Supplies A/c	2,000
	To Accounts Payable A/c		2,000
	(To record the purchae of supplies on credit)
June 9	Cash	21,000
	To Accounts Payable A/c		21,000
	(To record the note payable from bank)
June 10	Cash	8,000
	To Service Revenue A/c		8,000
	(To record the revenue earned and received)
June 12	Accounts Receivable A/c - IU A/c	16,500
	To Service Revenue A/c		16,500
	(To record the accounts receivable for service revenues)
June 15	Salaries Expense A/c	10,000
	To Cash a/c		1,00,000
	(To record the salaries paid)
June 22	Accounts Payable A/c	2,000
	To Cash a/c		2,000
	(To record amounts paid for supplies)
June 30	Rent Expense A/c	500
	To Cash a/c		500
	(To record the amount paid for Rent)
June 30	Retained Earnings A/c	1,000
	To Dividends payable A/c		1,000
	(To record the Dividends payable)
June 30	Dividends Payable A/c	1,000
	To Cash A/c		1,000
	(To record dividends paid)