Nicole Brighten started a painting business in November. The following are transactions for the month of November.

Instructions:

Prepare journal entries to record the transactions during the month of November detailed below. You may omit explanations of the transactions.

1.Nicole started the business by investing cash of $20,000, equipment with a fair value of $5,000 and painting supplies with a fair value of $800.

2.Entered into a painting contract with a client for a total of $2,500 that provided a deposit of $500 prior to commencing any work.

3.Purchased painting supplies for $320 on account.

4.Received cash of $1,200 for painting services rendered.

5.Paid for one year insurance in advance, $2,400.