Requirement #1:

During its first month of operation, the Melvin Plumbing Corporation, which specializes in residential plumbing,

completed the following transactions.

July 1

Began business by making a deposit in a company bank account of $90,000, in exchange

for 9,000 shares of $10 par value common stock.

July 3

Paid the current month's rent, $5,500.

July 5

Paid the premium on a 1-year insurance policy, $4,800

July 7

Purchased supplies on account from Little Company, $900.

July 10

Paid employee salaries, $3,300

July 14

Purchased equipment from Lake Company, $11,500. Paid $1,500 down and the balance was

placed on account. Payments will be $500.00 per month for 20 months. The first payment is due 8/1.

Note: Use accounts payable for the balance due.

July 15

Received cash for plumbing revenue for the first half of July, $7,700

July 19

Made payment on account to Lake Company, $500.

July 31

Received cash for plumbing revenue for the last half of July, $8,505

July 31

Declared and paid cash dividends of $600

Prepare journal entries to record the July transactions in the General Journal below.

Use the following account names for journal entries.

General Journal

Chart of Accounts: Account Title (Normal Balance)

Date

Description(Account Name)

Debit

Credit

Assets

Cash (Debit)

Prepaid Insurance (Debit)

Supplies (Debit)

Equipment (Debit)

Accumulated Depreciation - Equipment (Credit)

Liabilities

Accounts Payable (Credit)

Income Tax Payable (Credit)

Stockholders' Equity

Common Stock (Credit)

Retained Earnings (Credit)

Dividends (Debit)

Revenue

Revenue (Credit)

Expenses

Rent Expense (Debit)

Salaries Expense (Debit)

Insurance Expense (Debit)

Supplies Expense (Debit)

Depreciation Expense (Debit)

Income Tax Expense (Debit)

0

0

Note: Remember that debits must equal creditsAll of your journal entries should balance. Do this for me and ill give u 1500 pts ;)