ID In the journal provided, prepare journal entries (in good form) for the follo
ID: 2576773 • Letter: I
Question
ID In the journal provided, prepare journal entries (in good form) for the following transactions. Omit Apr. 1 Stuart Franz opened a dry cleaning service, called Same Day Cleaners, by depositing S60,000 into a business bank account for 5,000 shares of common stock.. 3 Paid two years' rent in advance, $14,400 Purchased dry cleaning equipment for $40,000. Paid $8,000 in cash, the remainder to be paid in two weeks. 17 Recorded cash received for services performed during the week, $3,000 20 Paid for the remainder of the equipment purchased on April 6 21 Received $200 in advance of cleaning and boxing a wedding gown. 23 Performed S500 o f dry cleaning services for Asa's Tuxedo Shop. Payment will be received in three days. 24 Paid the worker's wages for two weeks at $30 per week. 26 Received payment from Asa's Tuxedo Shop. 30 Received a telephone bill for $100 for the month of April, which will be paid in two weeks.Explanation / Answer
April Particulars Debit Credit 1 Cash $60,000 Common Stock $60,000 3 Prepaid Rent $14,400 Cash $14,400 6 Equipment $40,000 Cash $8,000 Account Payable $32,000 17 Cash $3,000 Service Revenue $3,000 20 Account Payable $32,000 Cash $32,000 21 Cash $200 Unearned Revenue $200 23 Accounts Receivable $500 Service Revenue $500 24 Wage Expense $60 Cash $60 26 Cash $500 Accounts Receivable $500 30 Telephone Bill $100 Telephone Expense Payable $100