Question

Selected transactions for Star Company in the first month of business, are as follows. Oct.     1...

Selected transactions for Star Company in the first month of business, are as follows.

Oct.     1          Invested $60,000 cash in business.

            4          Purchased furniture for $15,600 cash for use in business.

            10        Purchased supplies on account for $1,500.

            13        Billed customers $6,300 for services performed.

            18        Paid $1,350 salaries in cash.

            20        Received $3,900 cash from customers billed on October 13.

            24        Paid supplier $900 cash for supplies purchased on October10.

            30        Withdrew $4,500 cash for personal use of owner.

Required:

Prepare journal entries to record the above transactions.

Note : Answers should be in Word Version Please Please

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Homework Answers

Answer #1

Journal entries to record the transactions.

Date Accounts titles and explanations Debit$ Credit$
Oct 1 Cash 60000
Owner's Capital-Star Company 60000
(To record capital brought)
Oct 4 Furniture 15600
Cash 15600
(To record purchase of furniture)
Oct 10 Supplies 1500
Accounts payable 1500
(To record purchase of supplies)
Oct 13 Accounts receivable 6300
Service revenue 6300
(To record services performed)
Oct 18 Salaries expenses 1350
Cash 1350
(To record salaries paid)
Oct 20 Cash 3900
Accounts receivable 3900
(To record cash received from customer)
Oct 24 Account payable 900
Cash 900
(To record payament for supplies)
Oct 30 Owner's withdrawal(Capital) -Star Company 4500
Cash 4500
(To record withdrawal by owner)
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