Question

At the beginning of October, in 2018, Jerry Sunshine started a bookkeeping company Dollars Make Cents. The company had the following transactions during October: *Create a General Journal, and then post to a General ledger*

October 2 Jerry invested cash of $28,000, computer equipment of $8,200 and a vehicle valued at $28,000 in the business in exchange for common stock.

5 The company paid a total of $2,400 rent for October and November.

6 The company purchased state of the art document scanning and imaging equipment by paying $9,200 up front and financing the balance of $7,400 with a note payable to the bank.

7 The company purchased a 12 month insurance policy for $4,800. The policy is effective on October 1.

8 The company purchased office supplies and paper for $850 on account.

9 The company sold (5) payroll service packages, covering 6 months of fully automated payroll service for $6,000 each. The regular price was $6,500 each, but the customers received a discount for paying for the service up front. Each company will receive 2 payroll runs per month. One on the 15th and one on the 30th of each month.

13 The company provided $5,600 of tax consulting services to clients on account.

14 The company ran its first payroll service for two of the companies. The other three companies were not yet ready to begin running payroll.

15 The company paid $2,100 cash for two weeks salary earned by two employees.

21 The company received a $40 rebate on the paper and supplies purchased on the 8th.

22 The company purchased $950 for October advertising on account.

24 The company provided $8,200 of tax services to clients and received payment.

27 The company collected $2,000 from clients that were provided service on account on the 13th.

28 The company paid 1/2 of the bill for paper and supplies that was purchased on the 8th.

29 The company paid $2,100 cash for two weeks salary earned by two employees.

30 The company ran payroll service for all five companies that purchased service in October. 30 The company paid dividends of $700.

31 An employee and received a $300 advance for November travel for the company.

Answer 1

In the books of Dollars Make Cents:

Date	General Journal	Debit	Credit
October 2018		$	$
2	Cash	28,000
	Computer Equipment	8,200
	Vehicle	28,000
	Common Stock		64,200
5	Prepaid Rent	2,400
	Cash		2,400
6	Equipment	16,600
	Cash		9,200
	Notes Payable		7,400
7	Prepaid Insurance	4,800
	Cash		4,800
8	Supplies	850
	Accounts Payable		850
9	Cash	30,000
	Unearned Service Revenue		30,000
13	Accounts Receivable	5,600
	Consulting Revenue		5,600
14	Unearned Service Revenue	1,000
	Service Revenue		1,000
15	Salaries Expense	2,100
	Cash		2,100
21	Accounts Payable	40
	Supplies		40
22	Advertising Expense	950
	Accounts Payable		950
24	Cash	8,200
	Consulting Revenue		8,200
27	Cash	2,000
	Accounts Receivable		2,000
28	Accounts Payable	425
	Cash		425
29	Salaries Expense	2,100
	Cash		2,100
30	Unearned Service Revenue	2,500
	Service Revenue		2,500
30	Dividends	700
	Cash		700
31	Advance to Employee	300
	Cash		300