Record the following transactions in the general journal of Shards Company. Leav

Question

Record the following transactions in the general journal of Shards Company. Leave 1 blank row between each Journal Entry. NOTE - Input your entries in the table below. For the correct solution, you will use the entire space provided and leave 1 blank row between each Journal Entry.

Transaction:

1. On 5/1/2017 Investors invested $40,000 cash and $50,000 equipment in exchange for common stock of Shards Company.

2. On 5/3/2017, the company signed a lease on a building and paid $6,000 cash for 3 months rent in advance.

3. On 5/4/2017, the company bought supplies of $500 on account.

4. On 5/10/2017 the company performed $3,000 services for a client in exchange for cash.

5. On 5/15/2017 the company paid $800 cash for advertising.

6. On 5/18/2017, the company performed services of $8,000 on account.

7. On 5/20/2017, the company paid $500 for the transaction on 5/4/2017.

8. On 5/25/2017, the company paid $3500 cash for salaries.

9. On 5/30/2017, the company received $5,000 for services completed on 5/18/2017.

10. On 5/31/2017, the company paid a $200 dividend to stockholders.

Explanation / Answer

Recording of journal entries Date Accounts Titles and explanation Debit in Dollars Credit in Dollars 01-May Cash A/C $40,000 Equipment A/C 50000 Common Stock A/C $90,000 (To record issue of common share) 03-May Advance Rent   A/C $6,000 Cash A/C $6,000 (To record 3 months advance payment of rent) 04-May Supplies/ stationary A/C 500 Supplier A/C $500 (To record purchase of stationary) 10-May Cash A/C $3,000 Sales/Services renderd A/C $3,000 (To record service renderd) 15-May Advertising A/C 800 Cash A/C $800 (To record paid for advertisement) 18-May Customer A/C $8,000 Sales/Services renderd A/C $8,000 (To record service renderd) 20-May Supplier A/C 500 Cash A/C $500 (To record payment to supplier) 25-May Salaries A/C 3500 Cash A/C $3,500 (To record payment of salary) 30-May Cash A/C 5000 Customer A/C $5,000 (To record receiving of cash from customer) 31-May Dividend A/C 200 Cash A/C $200 (To record payment of dividend)

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