Question

Date	Transaction Description
July 1	Began business by making a deposit in a company bank account of $40,000, in exchange for 4,000 shares of $10 par value common stock.
July 1	Paid the premium on a 1-year insurance policy, $4,800.
July 1	Paid the current month's store rent expense, $3,600.
July 6	Purchased repair equipment from Paul's Pool Equipment Company, $7,800. Paid $600 down and the balance was placed on account.
July 8	Purchased repair supplies from Mary's Repair Company on credit, $450.
July 10	Paid telephone bill, $300.
July 11	Cash pool service revenue for the first third of July, $2,650.
July 18	Made payment to Mary's Repair Company, $300.
July 20	Cash pool service revenue for the second third of July, $4,000.
July 31	Cash pool service revenue for the last third of July, $2,250.
July 31	Paid the current month's electric bill, $500.
July 31	Declared and paid cash dividend of $1,100.

Please assist with the journal entries

Answer 1

Journal Entries

Date	Particulars	Debit	Credit
July 1	Bank A/c	$ 40000
	To Common Share Stock A/c		$ 40000
July 1	Insurance Premium A/c ($ 4800 x 3/12)	$ 1200
	Prepaid Expenses a/c ($ 4800 x 9/12)	$ 3600
	To Bank A/c		$ 4800
July 1	Rent Expenses A/c	$ 3600
	To Bank A/c		$ 3600
July 6	Repair Equipment A/c	$ 7800
	To Bank A/c		$ 600
	To Paul Pool Equipment Company		$ 7200
July 8	Repair Supplies A/c	$ 450
	To Mary's Repair Company		$ 450
July 10	Telephone Expenses A/c	$ 300
	To Bank a/c		$ 300
July 11	Cash A/c	$ 2650
	To Service revenue a/c		$ 2650
July 18	Mary's Repair Company A/c	$ 300
	To Bank a/c		$ 300
July 20	Cash a/c	$ 4000
	To Service revenue a/c		$ 4000
July 31	Cash a/c	$ 2250
	To Service revenue a/c		$ 2250
July 31	Electricity Expenses a/c	$ 500
	To Bank a/c		$ 500
July 31	Dividend a/c	$ 1100
	To Cash a/c		$ 1100