Selected transactions for Sheffield, an interior decorator corporation, in its first month of business, are as follows.

1. Issued stock to investors for $14,800 in cash.
2. Purchased used car for $10,400 cash for use in business.
3. Purchased supplies on account for $200.
4. Billed customers $4,250 for services performed.
5. Paid $200 cash for advertising at the start of the business.
6. Received $1,480 cash from customers billed in transaction (4).
7. Paid creditor $230 cash on account.
8. Paid dividends of $310 cash to stockholders.

Required:
Journalize the transactions.

Respuesta :

Answer:

1. Issued stock to investors for $14,800 in cash.

Account                  Debit                Credit

Cash                       $14,800

Common Stock                               $14,800

2. Purchased used car for $10,400 cash for use in business.

Account                      Debit                Credit

Cash                                                    $14,400

Vehicle                       $14,400

3. Purchased supplies on account for $200.

Account                       Debit                Credit

Supplies                      $200

Accounts Payable                                $200

4. Billed customers $4,250 for services performed.

Account                         Debit                Credit

Service Revenue          $4,250

Accounts Receivable                             $4,250

5. Paid $200 cash for advertising at the start of the business.

Account                         Debit                Credit

Advertising Expense    $200

Cash                                                        $200

6. Received $1,480 cash from customers billed in transaction (4).

Account                         Debit                Credit

Cash                              $1,480

Accounts Receivable                            $1,480

7. Paid creditor $230 cash on account.

Account                         Debit                Credit

Cash                                                        $230

Accounts Payable        $230

8. Paid dividends of $310 cash to stockholders.

Account                         Debit                Credit

Dividends Payable       $310

Cash                                                        $310