1 2 The following information is provided for the first month of operations for Legal Services Inc.: 3 A.The business was started by selling $100,000 worth of common stock. 4 B.Six months' rent was paid in advance, $4,500. 5 C.Provided services in the amount of $1,000. The customer will pay at a later date. 6 D.An office worker was hired. The worker will be paid $275 per week. 7 E.Received $500 in payment from the customer in "C". 8 F.Purchased $250 worth of supplies on credit. 9 G.Received the electricity bill. We will pay the $110 in thirty days. 10 H. Paid the worker hired in "D" for one week's work. 11 I.Received $100 from a customer for services we will provide next week. 12 J.Dividends in the amount of $1,500 were distributed. 13 14 15 Prepare the necessary journal entries to record these transactions. If an entry is not required for any of these 16 transactions, state this. 17 18 Item 19 A 20 A Account Cash Common stock Debit 100,000 Credit 100,000

1 2 The following information is provided for the first month of operations for Legal Services Inc.: 3 A.The business was started by selling $100,000 worth of common stock. 4 B.Six months' rent was paid in advance, $4,500. 5 C.Provided services in the amount of $1,000. The customer will pay at a later date. 6 D.An office worker was hired. The worker will be paid $275 per week. 7 E.Received $500 in payment from the customer in "C". 8 F.Purchased $250 worth of supplies on credit. 9 G.Received the electricity bill. We will pay the $110 in thirty days. 10 H. Paid the worker hired in "D" for one week's work. 11 I.Received $100 from a customer for services we will provide next week. 12 J.Dividends in the amount of $1,500 were distributed. 13 14 15 Prepare the necessary journal entries to record these transactions. If an entry is not required for any of these 16 transactions, state this. 17 18 Item 19 A 20 A Account Cash Common stock Debit 100,000 Credit 100,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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