Discover new perspectives and gain insights with IDNLearn.com's diverse answers. Get accurate and detailed answers to your questions from our knowledgeable and dedicated community members.
Answer:
Sustain Company
General Journal Entries;
June 1: Debit Cash $17,500
Credit Common stock $17,500
To record the investment by T. James.
June 2: Debit Furniture $10,500
Credit Accounts payable $10,500
To record the purchase of furniture on account.
June 3: Debit Prepaid Insurance $1,900
Credit Cash $1,900
To record the prepayment of insurance for 3 months.
June 4: Debit Accounts receivable $9,500
Credit Service revenue $9,500
To record the rendering of service on account.
June 12: Debit Accounts payable $10,500
Credit Cash $10,500
To record the payment on account.
June 20 Debit Cash $9,500
Credit Accounts receivable $9,500
To record the receipt of cash on account.
June 21 Debit Cash $16,500
Credit Common stock $16,500
To record additional investment by T. James.
June 30 Debit Cash $11,500
Credit Unearned revenue $11,500
To record the receipt of cash for future services.
Explanation:
a) Data and Analysis:
June 1: Cash $17,500 Common stock $17,500
June 2: Furniture $10,500 Accounts payable $10,500
June 3: Prepaid Insurance $1,900 Cash $1,900
June 4: Accounts receivable $9,500 Service revenue $9,500
June 12: Accounts payable $10,500 Cash $10,500
June 20 Cash $9,500 Accounts receivable $9,500
June 21 Cash $16,500 Common stock $16,500
June 30 Cash $11,500 Unearned revenue $11,500