Following are the transactions of Sustain Company. June 1 T. James, owner, inves
ID: 2332858 • Letter: F
Question
Following are the transactions of Sustain Company. June 1 T. James, owner, invested $14,500 cash in Sustain Co. in exchange for its common stock. 2 The company purchased $7,500 of furniture made from reclaimed wood on credit. 3 The company paid $1,300 cash for a 12-month insurance policy on the reclaimed furniture 4 The company billed a customer $6,500 in fees earned from preparing a SASB-compliant sustainability report. 12 The company paid $7,500 cash toward the payable from the June 2 furniture purchase. 20 The company collected $6,500 cash for fees billed on June 4. 21 The company received $13,500 cash from a sustainable investor group in exchange for common stock. 30 The company received $8,500 cash from a client for sustainability services for the next 3 months. Prepare general journal entries for the above transactions View transaction list Journal entry worksheet 123 4 5 678 T. James, owner, invested $14,500 cash in Sustain Co. in exchange for its common stock. Note: Enter debits before credits. Date General Journal Debit Credit June 01Explanation / Answer
Journal Entries
Date
General Journal
Debit
Credit
1-June
Cash
$ 14,500.00
Common stock
$ 14,500.00
(Common Stock issued)
2-June
Furniture
$ 7,500.00
Accounts Payable
$ 7,500.00
(Furniture purchased on Credit)
3-June
Prepaid insurance
$ 1,300.00
Cash
$ 1,300.00
(Prepaid Insurance Paid)
4-June
Accounts Receivable
$ 6,500.00
Service Revenue
$ 6,500.00
(Revenue earned)
12-June
Accounts Payable
$ 7,500.00
Cash
$ 7,500.00
(Paid for Outstanding balance in payables)
20-June
Cash
$ 6,500.00
Accounts Receivables
$ 6,500.00
(Received from Accounts Receivables)
21-June
Cash
$ 13,500.00
Common stock
$ 13,500.00
(Common Stock issued)
30-June
Cash
$ 8,500.00
Unearned Service Revenue
$ 8,500.00
(Advance received for services to be performed in future)
Adjusting entries on month end
30-June
Insurance Expense
$ 108.33
Prepaid Insurance
$ 108.33
(1 month's Insurance expired)
Explanations
Date
General Journal
Debit
Credit
1-June
Cash
$ 14,500.00
Common stock
$ 14,500.00
(Common Stock issued)
2-June
Furniture
$ 7,500.00
Accounts Payable
$ 7,500.00
(Furniture purchased on Credit)
3-June
Prepaid insurance
$ 1,300.00
Cash
$ 1,300.00
(Prepaid Insurance Paid)
4-June
Accounts Receivable
$ 6,500.00
Service Revenue
$ 6,500.00
(Revenue earned)
12-June
Accounts Payable
$ 7,500.00
Cash
$ 7,500.00
(Paid for Outstanding balance in payables)
20-June
Cash
$ 6,500.00
Accounts Receivables
$ 6,500.00
(Received from Accounts Receivables)
21-June
Cash
$ 13,500.00
Common stock
$ 13,500.00
(Common Stock issued)
30-June
Cash
$ 8,500.00
Unearned Service Revenue
$ 8,500.00
(Advance received for services to be performed in future)
Adjusting entries on month end
30-June
Insurance Expense
$ 108.33
Prepaid Insurance
$ 108.33
(1 month's Insurance expired)