Question

Post each journal entry to the T-account. Use the following Accounts - Cash, AR, Prepaid rent, Office supplies, Truck, Account Payable, Common stock, Service revenue, Gasoline Expense, Dividends. You don't need to calculate anything.

1. 1/1: The stockholders contributed cash of $30,000 and a truck worth of $40,000 into the business in exchange for common stock of $70,000

2. 1/2: Paid two months rent in Advanced in cash $3,200.

3. 1/12: Performed the trucking service on account of $6,000

4. 1/20: Received payment of $ 4,000 on the trucking service performed on 1/12 on account.

5. 1/21. Purchased office supplies on account, $300.

6. 1/22: Purchased gas on account, $400

7. 1/23: Performed the trucking service and received cash of $2,000.

8. 1/24: Paid $100 cash for 1/21 office supplies purchased on account.

9. Paid cash dividends  to shareholders total of $1,000.

Answer 1

Solution:

Cash
1/1	$ 30,000	1/2	$    3,200
1/20	$    4,000	1/24	$        100
1/23	$    2,000	1/24	$    1,000
End Balance	$ 31,700
Common Stock
		1/1	$ 70,000
		End Balance	$ 70,000
Truck
1/1	$ 40,000
End Balance	$ 40,000
Prepaid Rent
1/2	$    3,200
End Balance	$    3,200
Accounts Receivables
1/12	$    6,000	1/20	$    4,000
End Balance	$    2,000
Service Revenue
		1/12	$    6,000
		1/23	$    2,000
		End Balance	$    8,000
Office Supplies
1/21	$        300
End Balance	$        300
Accounts Payable
1/24	$        100	1/21	$        300
		1/22	$        400
		End Balance	$        600
Gasoline Expense
1/22	$        400
End Balance	$        400
Dividends
1/24	$    1,000
End Balance	$    1,000