k Exercise 2-8 (Algo) Preparing journal entries LO A1 Following are the transactions of Sustain Company. June 1 T. James, owner, invested $11,500 cash in Sustain Company in exchange for common stock. June 2 The company purchased $4,500 of furniture made from reclaimed wood on credit. June 3 The company paid $700 cash for a 12-month prepaid insurance policy on the reclaimed furniture. June 4 The company billed a customer $3,500 for sustainability services provided. June 12 The company paid $4,500 cash toward the payable from the June 2 furniture purchase. June 20 The company collected $3,500 cash for services billed on June 4. June 21 T. James invested an additional $10,500 cash in Sustain Company in exchange for common stock. June 30 The company received $5,500 cash in advance of providing sustainability services to a customer. Prepare general journal entries for the above transactions.
k Exercise 2-8 (Algo) Preparing journal entries LO A1 Following are the transactions of Sustain Company. June 1 T. James, owner, invested $11,500 cash in Sustain Company in exchange for common stock. June 2 The company purchased $4,500 of furniture made from reclaimed wood on credit. June 3 The company paid $700 cash for a 12-month prepaid insurance policy on the reclaimed furniture. June 4 The company billed a customer $3,500 for sustainability services provided. June 12 The company paid $4,500 cash toward the payable from the June 2 furniture purchase. June 20 The company collected $3,500 cash for services billed on June 4. June 21 T. James invested an additional $10,500 cash in Sustain Company in exchange for common stock. June 30 The company received $5,500 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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Transcribed Image Text:### Exercise 2-8 (Algo) Preparing Journal Entries
#### Learning Objective: LO A1
**Following are the transactions of Sustain Company:**
- **June 1**: T. James, owner, invested $11,500 cash in Sustain Company in exchange for common stock.
- **June 2**: The company purchased $4,500 of furniture made from reclaimed wood on credit.
- **June 3**: The company paid $700 cash for a 12-month prepaid insurance policy on the reclaimed furniture.
- **June 4**: The company billed a customer $3,500 for sustainability services provided.
- **June 12**: The company paid $4,500 cash towards the payable from the June 2 furniture purchase.
- **June 20**: The company collected $3,500 cash for services billed on June 4.
- **June 21**: T. James invested an additional $10,500 cash in Sustain Company in exchange for common stock.
- **June 30**: The company received $5,500 cash in advance for providing sustainability services to a customer.
**Prepare general journal entries for the above transactions.**
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The image also contains a "Journal entry worksheet" which appears to be an interactive section of the website where users can input their journal entries. It specifically shows the step for recording the transaction on June 12:
*The company paid $4,500 cash toward the payable from the June 2 furniture purchase.*
**Note:** Enter debits before credits.
The layout indicated users can navigate through different journal entries via numbered tabs (in this case, tabs 1 through 8) at the bottom of the worksheet.
**Image Footer:**
The footer includes:
- The McGraw Hill logo indicating the education platform (likely McGraw Hill Connect).
- Buttons for navigation (e.g., "Prev" and "Next").
This exercise helps students practice preparing journal entries for typical business transactions, reinforcing concepts like investments, purchases on credit, prepaid expenses, billing customers, and receiving advance payments.
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