Question

Record the transactions in the General Journal.

1/1 Bill Jones started a new business called Bill’s Landscaping Service. Inc. The company issued 300,000 shares of stock, par $1, for $300,000. The $300,000 was deposited in a bank account.

1/1 Purchased a truck for $40,000, no salvage value, useful life 5 years, for cash.

1/2 Purchased a 3 year insurance policy for $7,200 cash.

1/3 Purchased land $10,000; paid $ 8,000 down, gave a non-interest bearing note payable for the balance

1/15 Signed a contract to perform landscaping for $48,000. The job will take 2 months and we are paid at the beginning of the job. We begin work on the job immediately.

1/15 Signed a contract to perform landscaping for $40,000. The job will take 2 ½ months and we are paid at the end of the job. We begin work on the job immediately.

1/15 Purchased a computer for $ 4,800 cash, no salvage value, life 4 years.

1/20 Purchased office supplies for $ 2,000 on account

Additional Information: On 1/31, owed $800 wages and office supplies on hand totaled

$ 1,500.

GENERAL JOURNAL

DATE	ACCOUNTS	PR	DR	CR

Answer 1

Journal entries are as prepared below:

Date	Particulars	L.F	Amount ($)	Amount ($)
01-Jan	Bank		300,000
	Common Stock			300,000
	(To stock issued)
Jan-01	Truck		40,000
	Cash			40,000
	(To truck purchased)
Jan-02	Prepaid Insurance		7,200
	Cash			7,200
	(To insurance policy taken)
Jan-03	Land		10,000
	Cash			8,000
	Note Payable			2,000
	(To land purchased)
Jan-15	Cash		40,000
	Unearned Service Revenue			40,000
	(For cash received for landscaping work)
Jan-15	No entry
Jan-15	Computer		4,800
	Cash			4,800
	(To computer purchased)
Jan-20	Office Supplies		2,000
	Accounts Payable			2,000
	(To office supplies purchased)
Jan-31	Wages Expense		800
	Wages payable			800
	(For wages payable)
Jan-31	Office Supplies expense		500
	Office Supplies			500
	(To office supplies expensed)