July 1 The company issued $ 600,000 of capital stock for cash. 5 Office space was rented for July, and $ 5,000 was paid

Question

July 1 The company issued $ 600,000 of capital stock for cash. 5 Office space was rented for July, and $ 5,000 was paid for the rental. 8 Desks and chairs were purchased for the office on account, $ 28,800. 10 Equipment was purchased for $ 50,000; a note was given, to be paid in 30 days. 15 Purchased trucks for $ 150,000, paying $ 120,000 cash and giving a 60-day note to the dealer for $ 30,000. July 18 Paid for supplies received and already used, $ 2,880. 23 Received $ 17,280 cash as service revenue. 27 Insurance expense for July was paid, $ 4,500. 30 Paid for gasoline and oil used by the truck in July, $ 576. 31 Billed customers for janitorial services rendered, $ 40,320. 31 Paid salaries for July, $ 51,840. 31 Paid utilities bills for July, $ 5,280. 31 Paid cash dividends, $ 9,600. Journalize the transactions given for July in the general journal. Post the journal entries to ledger accounts. Prepare a trial balance as of July 31.

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Journal entries Date Account Titles Debit Credit 1-Jul Cash 600000 Common stock 600000 5-Jul Rent expense 5000 Cash 5000 8-Jul Furniture & fixtures 28800 Accounts payable 28800 10-Jul Equipment 50000 30-day Note payable 50000 15-Jul Truck 150000 Cash 120000 60-day Note payable 30000 18-Jul Supplies expense 2880 Cash 2880 23-Jul Cash 17280 Service revenue 17280 27-Jul Insurance expense 4500 Cash 4500 30-Jul Fuel expense 576 Cash 576 31-Jul Accounts receivable 40320 Service revenue 40320 Salaries expense 51840 Cash 51840 Utilities expense 5280 Cash 5280 Dividend expense 9600 Cash 9600 966076 966076 Ledger Accounts Net Ledger Balances Date Account Titles Debit Credit Debit Credit 10-Jul 30-day Note payable 50000 50000 15-Jul 60-day Note payable 30000 30000 8-Jul Accounts payable 28800 28800 31-Jul Accounts receivable 40320 40320 1-Jul Cash 600000 5-Jul Cash 5000 15-Jul Cash 120000 18-Jul Cash 2880 23-Jul Cash 17280 27-Jul Cash 4500 30-Jul Cash 576 31-Jul Cash 51840 31-Jul Cash 5280 31-Jul Cash 9600 417604 1-Jul Common stock 600000 600000 31-Jul Dividend expense 9600 9600 10-Jul Equipment 50000 50000 30-Jul Fuel expense 576 576 8-Jul Furniture & fixtures 28800 28800 27-Jul Insurance expense 4500 4500 5-Jul Rent expense 5000 5000 31-Jul Salaries expense 51840 51840 23-Jul Service revenue 17280 31-Jul Service revenue 40320 57600 18-Jul Supplies expense 2880 2880 15-Jul Truck 150000 150000 31-Jul Utilities expense 5280 5280 966076 966076 766400 766400 Trial Balance for July Account

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July 1 The company issued $ 600,000 of capital stock for cash

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Archived Solution

Journal entries
Date	Account Titles	Debit	Credit
1-Jul	Cash	600000
	Common stock		600000

5-Jul	Rent expense	5000
	Cash		5000

8-Jul	Furniture & fixtures	28800
	Accounts payable		28800

10-Jul	Equipment	50000
	30-day Note payable		50000

15-Jul	Truck	150000
	Cash		120000
	60-day Note payable		30000

18-Jul	Supplies expense	2880
	Cash		2880

23-Jul	Cash	17280
	Service revenue		17280

27-Jul	Insurance expense	4500
	Cash		4500

30-Jul	Fuel expense	576
	Cash		576

31-Jul	Accounts receivable	40320
	Service revenue		40320

	Salaries expense	51840
	Cash		51840

	Utilities expense	5280
	Cash		5280

	Dividend expense	9600
	Cash		9600
		966076	966076

	Ledger Accounts			Net Ledger Balances
Date	Account Titles	Debit	Credit	Debit	Credit
10-Jul	30-day Note payable		50000		50000

15-Jul	60-day Note payable		30000		30000

8-Jul	Accounts payable		28800		28800

31-Jul	Accounts receivable	40320		40320

1-Jul	Cash	600000
5-Jul	Cash		5000
15-Jul	Cash		120000
18-Jul	Cash		2880
23-Jul	Cash	17280
27-Jul	Cash		4500
30-Jul	Cash		576
31-Jul	Cash		51840
31-Jul	Cash		5280
31-Jul	Cash		9600	417604

1-Jul	Common stock		600000		600000

31-Jul	Dividend expense	9600		9600

10-Jul	Equipment	50000		50000

30-Jul	Fuel expense	576		576

8-Jul	Furniture & fixtures	28800		28800

27-Jul	Insurance expense	4500		4500

5-Jul	Rent expense	5000		5000

31-Jul	Salaries expense	51840		51840

23-Jul	Service revenue		17280
31-Jul	Service revenue		40320		57600

18-Jul	Supplies expense	2880		2880

15-Jul	Truck	150000		150000

31-Jul	Utilities expense	5280		5280
		966076	966076	766400	766400

Trial Balance for July
Account Titles	Debit	Credit
Cash	417604
Accounts receivable	40320
Equipment	50000
Furniture & fixtures	28800
Truck	150000
Accounts payable		28800
30-day Note payable		50000
60-day Note payable		30000
Common stock		600000
Dividend expense	9600
Service revenue		57600
Fuel expense	576
Insurance expense	4500
Rent expense	5000
Salaries expense	51840
Supplies expense	2880
Utilities expense	5280
Totals	766400	766400