Question

Record the following transactions in the general journal of Shards Company. Leave 1 blank row between each Journal Entry. NOTE - Input your entries in the table below. For the correct solution, you will use the entire space provided and leave 1 blank row between each Journal Entry.

Transaction:

1. On 5/1/2017 Investors invested $40,000 cash and $50,000 equipment in exchange for common stock of Shards Company.

2. On 5/3/2017, the company signed a lease on a building and paid $6,000 cash for 3 months rent in advance.

3. On 5/4/2017, the company bought supplies of $500 on account.

4. On 5/10/2017 the company performed $3,000 services for a client in exchange for cash.

5. On 5/15/2017 the company paid $800 cash for advertising.

6. On 5/18/2017, the company performed services of $8,000 on account.

7. On 5/20/2017, the company paid $500 for the transaction on 5/4/2017.

8. On 5/25/2017, the company paid $3500 cash for salaries.

9. On 5/30/2017, the company received $5,000 for services completed on 5/18/2017.

10. On 5/31/2017, the company paid a $200 dividend to stockholders.

Answer 1

Recording of journal entries
Date	Accounts Titles and explanation	Debit in Dollars	Credit in Dollars
01-May	Cash A/C	$40,000
	Equipment A/C	50000
	Common Stock A/C		$90,000
	(To record issue of common share)
03-May	Advance Rent   A/C	$6,000
	Cash A/C		$6,000
	(To record 3 months advance payment of rent)
04-May	Supplies/ stationary A/C	500
	Supplier A/C		$500
	(To record purchase of stationary)
10-May	Cash A/C	$3,000
	Sales/Services renderd A/C		$3,000
	(To record service renderd)
15-May	Advertising A/C	800
	Cash A/C		$800
	(To record paid for advertisement)
18-May	Customer A/C	$8,000
	Sales/Services renderd A/C		$8,000
	(To record service renderd)
20-May	Supplier A/C	500
	Cash A/C		$500
	(To record payment to supplier)
25-May	Salaries A/C	3500
	Cash A/C		$3,500
	(To record payment of salary)
30-May	Cash A/C	5000
	Customer A/C		$5,000
	(To record receiving of cash from customer)
31-May	Dividend A/C	200
	Cash A/C		$200
	(To record payment of dividend)