Question

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

1.		Owner invested $60,000 in exchange for common stock of the corporation.
2.		Hired an employee to be paid $400 per week, starting tomorrow.
3.		Paid two years’ rent in advance, $7,200.
4.		Paid the worker’s weekly wage.
5.		Recorded service revenue earned and received for the week, $1,500.

No.	Account Titles and Explanation	Debit	Credit
1.
2.
3.
4.
5.

Answer 1

Journal entries

Serial number	Account titles and explanation	Debit	Credit
(1)	Cash	50,000
	Common stock		50,000
	[Common stock issued in against of cash ]
(2)	No Entry	-
			-
(3)	Prepaid Expenses - Rent	7,200
	Cash		7,200
	[ Rent paid in advance ]
(4)	Wages expense	400
	Cash		400
	[ Weekly wages paid ]
(5)	Cash	1,500
	Service revenue		1,500
	[ Service revenue recorded and earned]