Question
The company has the following account balances on June 1, 2020. (all accounts have their normal balances) Drawings: 1000 Cash: 20000 Service revenue: 50000 Capital:
The company has the following account balances on June 1, 2020. (all accounts have their normal balances)
Drawings: 1000
Cash: 20000
Service revenue: 50000
Capital: 15000
Depreciation Expense: 700
Equipment: 30000
Accounts Payable: 5000
Insurance Expense: 500
Unearned Service Revenue: 4000
Prepaid Service Revenue: 500
Accounts Receivable: 4000
Rent Expense: 5000
Salaries Expense: 16000
Accumulated Depreciation - Equipment: 3000
During June 2018, the following events took place. Where appropriate, record a journal entry for each transaction. If no journal entry is required, write no entry.
- On June 2, the company prepaid rent for July to September for $6,000.
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- On June 8, someone invested $3,000 cash and a computer system valued at $2,000 into the company.
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- On June 10, the company collected $4,000 it was owed on account.
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- On June 15, The company provided a quotation for membership fees to a corporation looking to provide fitness benefits to its employees. The quotation was for $10,000. The corporation will decide next month if it is a good fit.
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- On June 22 the company provided product and collected $5,000.
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- On June 24 the company received a $1,000 bill for advertising expense that it will pay in the near future.
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- On June 27 the company paid $2,000 cash on account.
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- On June 29, the owner withdrew $600 for personal use.
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- On June 30, the company purchased $1,000 of supplies on account.
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- On June 30, the company paid employee salaries of $3,000.
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Explanation is needed if the item needs to to be calculated.
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