Financial Accounting
- Prepare the necessary journal entries to record these transactions.
A. Jessica Johansen started Sewn for You, a seamstress business, by contributing
$20,000 and receiving stock in exchange.
B. Paid $2,250 to cover the first three months’ rent.
C. Purchased $500 of sewing supplies. She paid cash for the purchase.
D. Purchased a sewing machine for $1,500 paying $200 cash and signing a note for
the balance.(compound entry)
E. Finished a job for a customer earning $180. The customer paid cash.
F. Received a $500 down payment to make a wedding dress.
G. Received an electric bill for $125 which is due to be paid in three weeks.
H. Completed an altering job for $45. The customer asked to be billed. - Prepare journal entries to record the following transactions for the month of July: Use the appropriate date.
A. on first day of the month, paid rent for current month, $2,000
B. on tenth day of month, paid prior month balance due on accounts, $3,100
C. on twelfth day of month, collected cash for services provided, $5,500
D. on twenty–first day of month, paid salaries to employees, $3,600
E. on thirty–first day of month, paid for dividends to shareholders, $800