Record the following transactions. (a) Started business by issuing 10.000 shares

Question

Record the following transactions. (a) Started business by issuing 10.000 shares of common stock for $23,000. (b) Hired Rebecca as an administrative assistant, promising to pay her $2,600 every two weeks. (c) Rented a building for three years at $600 per month and paid six months' rent in advance. (d) Purchased equipment for $5,500 cash. (e) Purchased $1,800 of supplies on account. (f) Provided services to customers for $7.800 cash. (g) Paid employees salaries. $5,800. (h) Paid for supplies purchased in item (e), (i) Paid $830 for current advertising in a local newspaper (j) Paid utility bill of $1,800 for the current month. Started business by issuing 10,000 shares of common stock for $23,000.

Explanation / Answer

Transaction Accounts Title Dr Cr a Cash $23,000 Common Stock $23,000 (Issue of common stock par value not mentioned so assumed it is no par value stock) b No entry As he has promised to pay c Prepaid rent ($600*6) 3600 Cash 3600 d Equipment 5500 Cash 5500 e Supplies 1800 Accounts Payable 1800 f Cash 7800 Service Revenue 7800 g Salaries expenses 5800 Cash 5800 h Accounts payable 1800 Cash 1800 i Advertising expenses 830 cash 830 j Utility Expenses 1800 cash 1800

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