Question
Are my answers are correct for journal entries and effect on the accounting equation for the following transactions? Friday Line, a modeling agency, completed the
Are my answers are correct for journal entries and effect on the accounting equation for the following transactions?
Friday Line, a modeling agency, completed the following transactions during the first month of operations:
April 1: Stockholders invested $65,000 cash along with equipment valued at $32,000 in the company in exchange for 1,000 shares of stock.
April 3: Friday Line paid $9,500 cash to settleaccounts payable.
April 6: Friday Line completed services for a client and immediately received $2,500 cash.
April 9: Friday Line completed a $7,500 project for a client who must pay within 30 days.
April 12: Friday Line made credit purchases of $9,200 for office equipment and $4,100 for office supplies. Payment is due within 10 days.
April 19: Friday Line paid $3,200 cash for the premium on a 12-month insurance policy.
April 21: Friday Line pre-paid $12,000 for 12 months' rent for their office space.
April 22: Friday Line received $6,000 cash as a partial payment for the work completed on April 9.
April 25: Friday Line purchased $725 of additional office supplies on credit.
April 26: Friday Line completed work for another client for $3,125 on credit.
April 27: Friday Line paid a dividend of $6,500 cash to its stockholders.
April 30: Friday Line paid $525 cash for this month's utility bill.
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