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Journalize the following business transactions. (Credit account titles are automatically indented when the amount is entered....

Journalize the following business transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) Qing Wei invests $9,900 cash in the business. (b) Insurance of $900 is paid for the year. (c) Supplies of $2,200 are purchased on account. (d) Cash of $8,100 is received for services performed.

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Answer #1

The following are the journal entries required:

1. Since cash is received into business, it is debited and common stock is credited indicating it as capital for the business.

2. Since, cash paid for insurance which is not yet incurred, it is debited to Prepaid Insurance and cash is credited. At the year end, Insurance expense will be recognized.

3. Supplies are purchased, hence they are debited but as they are purchased on account, Accounts Payable is credited.

4. Cash received is debited and Service Revenue is credited.

Hope it is helpful!!

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