During 2018, its first year of operations as a delivery service, Carla Vista Corp. entered into the following transactions. The fiscal year end for Carla Vista is December 31.1. Issued common shares to investors in exchange for $ 90,000 in cash.2. Borrowed $ 46,000 cash from the bank, due 2020.3. Purchased delivery vehicles for $ 61,000 cash.4. Received $ 24,000 from customers for services provided.5. Purchased supplies for $ 3,700 on account.6. Paid rent of $ 5,500.7. Performed services on account for $ 9,000.8. Paid salaries of $ 28,000.9. Declared and paid a dividend of $ 12,000 to shareholders.10. Paid income taxes of $ 200 for the month.Prepare journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)Sr NoAccount Titles and ExplanationDebitCredit1 2 3 4 5 6 7 8 9 10

The journal entries are prepared to keep the record of day to day transactions of the business.

Answered: During 2018, its first year of…

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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During 2018, its first year of operations as a delivery service, Carla Vista Corp. entered into the following transactions. The fiscal year end for Carla Vista is December 31.

1.		Issued common shares to investors in exchange for $ 90,000 in cash.
2.		Borrowed $ 46,000 cash from the bank, due 2020.
3.		Purchased delivery vehicles for $ 61,000 cash.
4.		Received $ 24,000 from customers for services provided.
5.		Purchased supplies for $ 3,700 on account.
6.		Paid rent of $ 5,500.
7.		Performed services on account for $ 9,000.
8.		Paid salaries of $ 28,000.
9.		Declared and paid a dividend of $ 12,000 to shareholders.
10.		Paid income taxes of $ 200 for the month.

Prepare journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)