Skysong, Inc. was opened on August 1 by Joe Skysong. The following selected events and transactions occurred during August.Aug. 1 Invested $59,000 cash in the business in exchange for common stock.3 Purchased O’Brien’s Tree Service for $42,000 cash. The price consists of land $28,000, building $12,000, and equipment $2,000. (Make one compound entry.)5 Advertised the opening of the business, paying advertising expenses of $1,300.6 Paid cash $1,560 for a one-year insurance policy.10 Purchased equipment for $2,100 from Sheridan Company, payable in 30 days.18 Received fees for services of $1,000 in cash.25 Declared and paid a $650 cash dividend.30 Paid wages of $1,300.30 Paid Sheridan Company in full.31 Received $650 of fees in cash.Skysong uses the following accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Common Stock, Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense.Journalize the August transactions.

Name: Skysong, Inc. was opened on August 1 by Joe Skysong. The following sel
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Description: Skysong, Inc. was opened on August 1 by Joe Skysong. The following selected events and transactions occurred during August.Aug. 1 Invested $59,000 cash in the business in exchange for common stock.3 Purchased O’Brien’s Tree Service for $42,000 cash.

Answered: Skysong, Inc. was opened on August 1 by…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Skysong, Inc. was opened on August 1 by Joe Skysong. The following selected events and transactions occurred during August.

Aug. 1		Invested $59,000 cash in the business in exchange for common stock.
3		Purchased O’Brien’s Tree Service for $42,000 cash. The price consists of land $28,000, building $12,000, and equipment $2,000. (Make one compound entry.)
5		Advertised the opening of the business, paying advertising expenses of $1,300.
6		Paid cash $1,560 for a one-year insurance policy.
10		Purchased equipment for $2,100 from Sheridan Company, payable in 30 days.
18		Received fees for services of $1,000 in cash.
25		Declared and paid a $650 cash dividend.
30		Paid wages of $1,300.
30		Paid Sheridan Company in full.
31		Received $650 of fees in cash.

Skysong uses the following accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Common Stock, Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense.

Journalize the August transactions.

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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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