Journal Entries for this transaction

July 01 Purchased equipment, paying $4,210 cash and signing a 2-year note payable for $20,840. The equipment has a 4-year useful life. The note has a 5% interest rate, with interest payable on the first day of each following month. July 02 Issued 20,600 shares of common stock for $51,500 cash. July 03 Paid $4,200 cash for a 12-month insurance policy effective July 01. July 10 Collected $1,650 cash on account from Milani Brothers. This client was billed in June when Green River performed the service. July 13 Performed services for Fitzgerald Enterprises. This client paid $1,920 in advance last month. All services relating to this payment are now completed. July 14 Paid $700 cash for a utility bill. This was related to June utilities that were accrued at the end of June. July 20 Performed services worth $29.200 on account and billed customers. Adjustment data: 1. Adjustment of prepaid insurance, 2. Equipment depreciation, $521 per month. 3. Accrual of interest on note payable. 4. Estimated utilities expense for July, $1,100 (invoice will be received next month). 5. Income tax for July, $2,400 will be paid next month