Question

BIG WAVE DAVE BOARD REPAIR SERVICES LTD. Dave Scott opened Big Wave Dave Board Repair Services Ltd. in June 2020. During June the following transactions were completed:

June 1 Dave invested $24,000 cash in the business for 1,000 common shares.

June 1 Purchased used board repair equipment for $26,000, paying $4,000 cash and the balance placed on account (the equipment had a list price of $27,000).

June 1 Paid $500 for the June rent.

June 3 Purchased board repair supplies for $1,800 on account.

June 5 Purchased $2,400 on a 1-year insurance policy, effective June 1st.

June 12 Billed (invoiced) customers $3,800 for repair services done in June.

June 18 Paid $3,000 of the amount owed on equipment, and $400 of the amount owed on repair supplies.

June 20 Paid $1,600 for employee salaries.

June 21 Collected $1,400 from customers billed on June 12.

June 25 Billed customers $3,000 for repair services.

June 30 Received the utilities bill for June, $150, to be paid in July.

June 30 Declared and paid a $500 cash dividend.

Journalize and post the June transactions in the Big Wave Dave General Journal

Answer 1

Journal Entries
Sr. No.	Date	Particulars	Debit ($)	Credit ($)
1	June. 01	Cash A/c                                            Dr.	24,000
		To Share Capital		24,000
2	June. 01	Equipment A/c                                Dr.	26,000
		To Cash		4,000
		To Vendor A/c		22,000
3	June. 01	Rent A/c                                           Dr.	500
		To Cash		500
4	June. 03	Purchases A/c                                 Dr.	1,800
		To Accounts payables		1,800
5	June. 05	Insurance Expense                      Dr.	1,200
		Prepaid insurance                       Dr.	1,200
		To Cash		2,400
6	June. 12	Accounts receivables                   Dr.	3,800
		To Service Revenue A/c		3,800
7	June. 18	Accounts Payable                          Dr.	400
		Vendor A/c                                     Dr	3,000
		To Cash		3,400
8	June. 20	Salary A/c                                        Dr.	1,600
		To Cash		1,600
9	June. 21	Cash A/c                                          Dr.	1,400
		To Accounts receivables		1,400
10	June. 25	Accounts receivables                   Dr.	3,000
		To Service Revenue A/c		3,000
11	June. 30	Utilities   Expenses                       Dr.	150
		To Accounts Payable		150
12	June. 30	Dividend A/c                                 Dr.	500
		To Cash		500