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 $4,500 cash for personal use of owner.
Required:
Prepare journal entries to record the above transactions.
Note : Answers should be in Word Version Please Please
Journal entries to record the transactions.
Date | Accounts titles and explanations | Debit$ | 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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