Question

following are the transactions of sustain company.
june 1 t. james, owner, invested $15,500 cash in sustain company in exchange for common stock.
june 2 the company purchased $8,500 of furniture made from reclaimed wood on credit.
june 3 the company paid $1,500 cash for a 12 - month prepaid insurance policy on the reclaimed furniture.
june 4 the company billed a customer $7,500 for sustainability services provided.
june 12 the company paid $8,500 cash toward the payable from the june 2 furniture purchase.
june 20 the company collected $7,500 cash for services billed on june 4.
june 21 t. james invested an additional $14,500 cash in sustain company in exchange for common stock.
june 30 the company received $9,500 cash in advance of providing sustainability services to a customer.
prepare general journal entries for the above transactions.
view transaction list
journal entry worksheet
1 2 3 4 5 6 7 8
t. james, owner, invested $15,500 cash in sustain company in exchange for
common stock.
note: enter debits before credits.
date general journal debit credit
june 01

Explanation:

June 1:

Step1: Identify accounts (Cash, Common Stock)

Cash is debited (increase), Common Stock credited (increase).

Step2: Record amounts

Debit Cash $15,500; Credit Common Stock $15,500.

June 2:

Step1: Accounts (Furniture, Accounts Payable)

Furniture debited (asset increase), Accounts Payable credited (liability increase).

Step2: Record amounts

Debit Furniture $8,500; Credit Accounts Payable $8,500.

June 3:

Step1: Accounts (Prepaid Insurance, Cash)

Prepaid Insurance debited (asset increase), Cash credited (asset decrease).

Step2: Record amounts

Debit Prepaid Insurance $1,500; Credit Cash $1,500.

June 4:

Answer:

Step1: Accounts (Cash, Unearned Revenue)

Cash debited (asset increase), Unearned Revenue credited (liability increase).

Step2: Record amounts

Debit Cash $9,500; Credit Unearned Revenue $9,500.

Journal Entries (Summarized):

Date	General Journal	Debit	Credit
	Common Stock		15,500
June 02	Furniture	8,500
	Accounts Payable		8,500
June 03	Prepaid Insurance	1,500
	Cash		1,500
June 04	Accounts Receivable	7,500
	Service Revenue		7,500
June 12	Accounts Payable	8,500
	Cash		8,500
June 20	Cash	7,500
	Accounts Receivable		7,500
June 21	Cash	14,500
	Common Stock		14,500
June 30	Cash	9,500
	Unearned Revenue		9,500