Question

Complete the first step in the accounting cycle: Record journal entries for the following transactions in the General Journal, which is the first sheet in the template file. Explanations are not needed.

Dec.     1          Investors contributed $96,000 in exchange for shares of common stock.

             8          Performed services on account for $32,350.

             9          Purchased supplies on account for $672.

            10         Purchased furniture at a purchase price of $12,000, by making a cash down payment of $2,000, and signing a note for the remainder. (HINT: This journal entry will have 3 accounts – one debit and two credits. Remember, debits have to equal credits in every journal entry.)

            12         Received utility bill to be paid next month, $525.

            15         Paid wages, $15,000.

            17         Received payments on account from customers, $26,960.

            21         Paid vendors on account, $6,195.

            24         Received $5,000 from customers for work to be performed in January.

            28         Paid dividends of $44,000.

            31         Paid the next 6 months rent in advance, $12,000.

Answer 1