Question

Okay, I have a case study I need to complete by the end of this week but I am stuck. Plus, I need to make sure that I am doing this correctly. It is a layered challenge. I will have to send the study in pieces because I could not attach the actual document.   

Requirement #1:                                              
During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation,                                              
completed the following transactions.                                              
                                              
July 1   Began business by making a deposit in a company bank account of $60,000, in exchange                                          
   for 6,000 shares of $10 par value common stock.                                          
                                              
July 3   Paid the current month's rent, $3,500                                          
                                              
July 5   Paid the premium on a 1-year insurance policy, $4,200                                          
                                              
July 7   Purchased supplies on account from Little Company, $1,000.                                          
                                              
July 10   Paid employee salaries, $3,500                                          
                                              
July 14   Purchased equipment from Lake Company, $10,000. Paid $2,500 down and the balance was                                          
   placed on account. Payments will be $500.00 per month until the equipment is paid. The first payment is due 8/1.                                          
   Note: Use accounts payable for the balance due.                                          
                                              
July 15   Received cash for preparing tax returns for the first half of July, $8,000                                          
                                              
July 19   Made payment on account to Lake Company, $500.                                          
                                              
July 31   Received cash for preparing tax returns for the last half of July, $9,000                                          
                                              
July 31   Declared and paid cash dividends of $600.                                          

           Prepare journal entries to record the July transactions in the General Journal below.                                           Use the following account names for journal entries.  
                                              
           General Journal                               Chart of Accounts: Account Title (Normal Balance)  
Date   Description(Account Name)           Debit   Credit                          
                                            

Answer 1

	Date	Description (Account name)					Debit	Credit
	July 1.	Cash					60000
		Common stock						60000
		(Common stock issued for cash)
	July 3.	Rent expense					3500
		Cash						3500
		(Rent paid)
	July 5.	Prepaid insurance					4200
		Cash						4200
		(Premium on 1 year insurance policy paid)
	July 7.	Supplies					1000
		Accounts payable						1000
		(Purchased supplies on account)
	July 10.	Salaries expense					3500
		Cash						3500
		(Salaries paid)
	July 14.	Equipment					10000
		Cash						2500
		Accounts payable						7500
		(Equipment purchased)
	July 15.	Cash					8000
		Service revenue						8000
		(Received cash for preparing tax returns)
	July 19.	Accounts payable					500
		Cash						500
		(Payment made on account)
	July 31.	Cash					9000
		Service revenue						9000
		(Received cash for preparing tax returns)
	July 31.	Dividends					600
		Cash						600
		(Dividend paid)