Following are the transactions of Sustain Company. June 1 T. James, owner, invested $21,000 cash in Sustain Company in exchange for common stock. June 2 The company purchased $14,000 of furniture made from reclaimed wood on credit. June 3 The company paid $2,600 cash for a 12-month prepaid insurance policy on the reclaimed furniture. June 4 The company billed a customer $13,000 for sustainability services provided. June 12 The company paid $14,000 cash toward the payable from the June 2 furniture purchase. June 20 The company collected $13,000 cash for services billed on June 4. June 21 T. James invested an additional $20,000 cash in Sustain Company in exchange for common stock. June 30 The company received $15,000 cash in advance of providing sustainability services to a customer. Prepare general journal entries for the above transactions.
Following are the transactions of Sustain Company. June 1 T. James, owner, invested $21,000 cash in Sustain Company in exchange for common stock. June 2 The company purchased $14,000 of furniture made from reclaimed wood on credit. June 3 The company paid $2,600 cash for a 12-month prepaid insurance policy on the reclaimed furniture. June 4 The company billed a customer $13,000 for sustainability services provided. June 12 The company paid $14,000 cash toward the payable from the June 2 furniture purchase. June 20 The company collected $13,000 cash for services billed on June 4. June 21 T. James invested an additional $20,000 cash in Sustain Company in exchange for common stock. June 30 The company received $15,000 cash in advance of providing sustainability services to a customer. Prepare general journal entries for the above transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 1
Transcribed Image Text:Following are the transactions of Sustain Company.
June 1 T. James, owner, invested $21,000 cash in Sustain Company in exchange for common stock.
June 2 The company purchased $14,000 of furniture made from reclaimed wood on credit.
June 3 The company paid $2,600 cash for a 12-month prepaid insurance policy on the reclaimed furniture.
June 4 The company billed a customer $13,000 for sustainability services provided.
June 12 The company paid $14,000 cash toward the payable from the June 2 furniture purchase.
June 20 The company collected $13,000 cash for services billed on June 4.
June 21 T. James invested an additional $20,000 cash in Sustain Company in exchange for common stock.
June 30 The company received $15,000 cash in advance of providing sustainability services to a customer.
Prepare general journal entries for the above transactions.
Answer is not complete.
Debit
Credit
No
Date
General Journal
Cash
21,000 O
June 01
14,000
2
June 02
Furniture
2,600
3
June 03
Prepaid insurance
Transcribed Image Text:June 21 T. James invested an additional $20,000 cash in Sustain Company in exchange for common stock.
June 30 The company received $15,000 cash in advance of providing sustainability services to a customer.
Prepare general journal entries for the above transactions.
X Answer is not complete.
No
Date
General Journal
Debit
Credit
June 01
Cash
21,000 O
June 02
Furniture
14,000
June 03
Prepaid insurance
2,600 O
4
June 04
Accounts receivable
13,000
June 12
Accounts payable
14,000
June 20
Cash
13,000
7
June 21
Cash
20,000
8
June 30
Cash
15,000
Expert Solution
Step 1
Introduction:
Journals:
Recording of a business transactions in a chronological order.
First step in the preparation of final accounts is recording journals.
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