Question

record the following journal entries.

1) Jerry invested cash of $28,000, computer equipment of $8,200 and a vehicle valued at $28,000 in the business in exchange for common stock.

2) The company paid a security deposit of 1,000 to rent an office. The security deposit will be returned at the end of the lease if no damage occurs to the property.

3) The company paid a total of $3,600 rent for October, November and December.

4) The company purchased state of the art document scanning and imaging equipment by paying $9,200 up front and financing the balance of $7,400 with a note payable to the bank.

5) The company purchased a 12 month insurance policy for $4,800. The policy is effective on October 1.

6) The company purchased office supplies and paper for $850 on account

Answer 1

	Particulars	Debit	Credit
1)	Cash Account	$28,000
	Computer Equipment	$8,200
	Vehicle	$28,000
	Share Capital		$64,200
	( For investment in business in exchange for common stock)
2)	Security Deposit	$1,000
	Cash		$1,000
	( For Security Deposit paid )
3)	Advance Rent	$3,600
	Cash		$3,600
	( For Rent Paid in advance for the month of octotber, November & December)
4)	Equipment	$16,600
	Cash		$9,200
	Notes Payable		$7,400
	( For Purchasing Equipment)
5)	Prepaid Insurance	$4,800
	Bank		$4,800
	( For Insurance Policy Purchased )
6)	Office supplies	$850
	Accounts Payable		$850
	( For Office Supplies Purchased on account)

- Above Journal entries are based on Date Septmber 30,since no date is given. If there is any change in date, please let me know to edit the answers.