Question

Prepare the journal entries for all transactions in August

Stacy's Company, owned by F. Stacy, started operations in August and completed the following transactions during the first month of operations.

August 1 F. Stacy invested $75,000 cash in the company

August 2The company purchased $45,000 in office equipment. It paid $15,000 in cash and signed a note payable promising to pay the $10,000 over the next three years

August 2 The company rented office space and paid $8,000 for the August rent

August 6 The company installed a new roof for a customer and immediately collected $9,000

August 7 The company paid a supplier $7,000 for roofing materials used on the August 6th job

August 8 The company purchased a $9,500 copy machine for office use on credit August 9 The company completed work for additional customers on credit in the amount of $26,000

August15 The company paid it's employees' salaries $2,700 for the first half of the month

August17 The company installed a new roof for a customer and immediately collected $3,900

August 20 The company received $10,000 in payments from the customers billed on August 9th

August 28 The company paid $1,500 on the copy machine purchased on August 8th. It will pay the remaining balance in September

August 31 The company paid it's employees' salaries $2,700 for the second half of the month

August 31 The company paid a supplier $5,300 for roofing materials used on the remaining jobs completed during August

August 31 The company paid $850 for this month's utility bill

Answer 1

Date	Account titles & Explanations					Debit	Credit
1-Aug	Cash					75,000
	F.Stacy's capital/common stock						75,000
2-Aug	office equipment					45,000
	cash						15,000
	notes payable						30,000
2-Aug	Rent expense					8,000
	cash						8,000
6-Aug	Cash					9,000
	service revenue						9,000
7-Aug	Accounts payable					7,000
	cash						7,000
8-Aug	Equipment-copy machine					9,500
	accounts payable						9,500
9-Aug	Accounts receivable					26,000
	Service revenu						26,000
15-Aug	Salary & wage expense					2,700
	cash						2,700
17-Aug	Cash					3,900
	Service revenue						3,900
20-Aug	Cash					10,000
	Accounts receivable						10,000
28-Aug	Accounts payable					1,500
	cash						1,500
31-Aug	Salary & wage expense					2,700
	cash						2,700
31-Aug	Accounts payable					5,300
	cash						5,300
31-Aug	Utilities expense					850
	cash						850