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In: Accounting

Make the following journal entries in good form. 1. On January 1, 2020, Entity A sold...

Make the following journal entries in good form.

1. On January 1, 2020, Entity A sold common stock for $30,000 to investors.

2. On January 3, 2020, Entity A performed services for Entity B for $1,500 on account.

3. On January 5, 2020, Entity A performed services for Entity C for $750 and Entity C paid.

4. On January 7, 2020, Entity A purchased a new computer (office equipment) from Best Buy for $500, paying $100 down, the rest on account.

Solutions

Expert Solution

Date

Particulars

Debit

Credit

1st Jan 2020

Cash

To Common Stock

(Being issue of Common Stock)

       $30,000

      $30,000

3rd Jan 2020

Entity B (Accounts Receivable)

To Service Income

(Provide service to B on account)

         $1,500

        $1,500

5th Jan 2020

Cash

To Service Income

(Service provided to C and cash paid)

             $750

           $750

7th Jan 2020

Office Equipment

To Cash

To Best Buy (Accounts Payable)

(Computer purchased by paying partial amount as cash and the balance on account)

             $500

           $100

           $400

ekkarill92 answered 1 year ago
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