Question

1. Stockholders invest $90,000 cash to start the business.

2. Purchased three digital copy machines for $400,000, paying $118,000 cash and signing a 5-year, 6% note for the remainder.
3. Purchased $5,500 paper supplies on credit.
4. Cash received for photocopy services amounted to $8,400.
5. Paid $500 cash for radio advertising.
6. Paid $800 on account for paper supplies purchased in transaction 3.
7. Dividends of $1,600 were paid to stockholders.
8. Paid $1,200 cash for rent for the current month.
9. Received $2,200 cash advance from a customer for future copying.
10. Billed a customer for $500 for photocopy services completed.
No. Account Titles and Descriptions Debit Credit
1.
2.
3.
4.
5.

Answer 1

S/n General journal Debit Credit

1. Cash $90,000

Common stock $90,000

2. Equipment $400,000

Cash $180,000

Notes payable $282,000

3 Supplies $5,500

Account payable $5,500

4. Cash $8,400

Service revenue $8,400

5. Advertising expense $500

Cash $500

6. Account payable $800

Cash $800

7. Dividends $1,600

Cash $1,600

8. Rent expense $1,200

Cash $1,200

9. Cash $2,200

Unearned service revenue $2,200

10. Account receivable $500

Service revenue $500