Following are the transactions of Sustain Company. June 1 T. James, owner, invested $16,000 cash in Sustain Company. June 2 The company purchased $9,000 of furniture made from reclaimed wood on credit. June 3 The company paid $1,600 cash for a 12- month prepaid insurance policy on the reclaimed furniture. June 4 The company billed a customer $8,000 for sustainability services provided. June 12 The company paid $9,000 cash toward the payable from the June 2 furniture purchase. June 20 The company collected $8,000 cash for services billed on June 4. June 21 T. James invested an additional $15,000 cash in Sustain Company. June 30 The company received $10,000 cash in advance of providing sustainability services to a customer.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Following are the transactions of Sustain Company.
June 1 T. James, owner, invested $16,000 cash in
Sustain Company.
June 2 The company purchased $9,000 of furniture
made from reclaimed wood on credit.
June 3 The company paid $1,600 cash for a 12-
month prepaid insurance policy on the
reclaimed furniture.
June 4 The company billed a customer $8,000 for
sustainability services provided.
June 12 The company paid $9,000 cash toward the
payable from the June 2 furniture
purchase.
June 20 The company collected $8,000 cash for
services billed on June 4.
June 21 T. James invested an additional $15,000
cash in Sustain Company.
June 30 The company received $10,000 cash in
advance of providing sustainability
services to a customer.
Prepare general journal entries for the above transactions.
Transcribed Image Text:Following are the transactions of Sustain Company. June 1 T. James, owner, invested $16,000 cash in Sustain Company. June 2 The company purchased $9,000 of furniture made from reclaimed wood on credit. June 3 The company paid $1,600 cash for a 12- month prepaid insurance policy on the reclaimed furniture. June 4 The company billed a customer $8,000 for sustainability services provided. June 12 The company paid $9,000 cash toward the payable from the June 2 furniture purchase. June 20 The company collected $8,000 cash for services billed on June 4. June 21 T. James invested an additional $15,000 cash in Sustain Company. June 30 The company received $10,000 cash in advance of providing sustainability services to a customer. Prepare general journal entries for the above transactions.
Date
General Journal
Debit
Credit
June 01
Record entry
Clear entry
View genera
Transcribed Image Text:Date General Journal Debit Credit June 01 Record entry Clear entry View genera
Expert Solution
Step 1

The practice of capturing commercial transactions for the first time in the account books is known as journal entry. Entries, closing entries, and regular entries are examples of diary entries. Journal entries serve as the foundation for other accounting tasks such as ledger account preparation, trial balances, financial statements, and so on. They are listed in chronological order based on the date of the incident. Adjusting entries, closing entries, and regular entries are examples of diary entries. 

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