Question

Laundry Company, Inc., entered into the following transactions in August:

Aug. 1 Received cash for capital stock issued to owners, $ 400,000.

3 Paid rent for August on a building and laundry equipment rented, $ 3,000.

6 Performed laundry services for $ 2,000 cash.

8 Secured an order from a customer for laundry services of $ 7,000. The services are to be performed next month.

13 Performed laundry services for $ 6,300 on account for various customers.

15 Received and paid a bill for $ 430 for supplies used in operations.

23 Cash collected from customers on account, $ 2,600. 31 Paid $ 2,400 salaries to employees for August.

31 Received the electric and gas bill for August, $ 385, but did not pay it at this time.

31 Paid cash dividend, $ 1,000.

Prepare journal entries for these transactions in the general journal.

Answer 1

Date	particulars	Debit	Credit
Aug 01	Cash A/c	$400,000
	Capital		$400,000
03	Rent Expense	$3000
	Cash A/c		$3000
06	cash a/c	$2000
	Service Revenue		$2000
08	cash a/c	$7000
	Unearned Revenue		$7000
13	account receivables	$6300
	Service revenue		$6300
15	Office supplies	$430
	Cash		$430
23	Cash	$2600
	Account Receivable		$2600
31	Salaries	$2400
	Cash		$2400
31	electric and gas bill	$385
	Outstanding expense		$385
31	dividend payable	$1000
	Cash		$1000