Yorkston Corporation was formed in 1961.The company came into existence concurrent with the beginning of construction of super highways throughout the country.It seems the company's founders had innovated a unique process of applying high-gloss luminescent paint to street signs, and these were in high demand for the new high-speed roadways.

The company has gone on to develop a full line of highway safety products.Yorkston is now in the process of building a company museum.Someone has dug up the first page from the company's original general journal.This page will be on display in the museum.When you examine this page, you will note that the bookkeeper simply recorded the debits and credits, but included no descriptions.

Your job is to review the journal page and fill in a description for each transaction .These descriptions will be included on a explanatory diagram included in the display case.The diagram should also include some information that would allow a museum visitor to know what the document is and what it was used for.

B-02.03 Mo Lambert formed a corporation to provide concrete construction work. His jobs typically involve building parking lots, drives, and foundations. Mo provided the following information about transactions occurring during the first month of operation. Evaluate the transactions and prepare journal entries for this activity. Jan. 2, 20X5 Mo Lambert invested $10,000 cash in the capital stock of the newly formed corporation. Jan. 4, 20X5 Purchased equipment on account for $7,500. Jan. 12, 20X5 Received $15,000 from customers for services rendered. Jan. 15, 20X5 Received a bill for construction supplies used in the amount of $2,000. Jan. 18, 20X5 Provided $3,200 of services on account. Jan. 20, 20X5 Paid employees $2,300 for wages earned. Jan. 22, 20X5 Collected 60% of the amount due for the work provided on January 18. Jan. 23, 20X5 Paid 40% of the amount due on the equipment purchased on January 4. Jan. 25, 20X5 Purchased (and immediately used) construction supplies for cash in the amount of $600. Jan. 31, 20X5 The company paid Mo Lambert a $1,500 dividend. Name: Date: B-02.03 Section: GENERAL JOURNAL Date 1-2-X5 Page 1 Accounts cash Debits Credits 10000 10000 Capital Stock Invested cash in the corporation 1-4-X5 Equipment 7500 Accounts Payable 7500 Purchased equipment 1-12-X5 Cash 15000 Revenue 15000 Received cash for servieces rendered 1-15-X5 Supplies Expense 2000 Accounts Payable Received a bill for construction supplies 1-18-X5 Accounts Receivable 2000 3200 Revenue 3200 Provided services on an account 1-20-X5 Wage Expense 2300 Cash 2300 Paid employees for wages earned 1-22-X5 Cash Accounts Receivable Collected partical ammount for work Jaunary 18th 1920 1920 Name: Date: B-02.03 Section: GENERAL JOURNAL Date 1-23-X5 Page 2 Accounts Accounts Payable Debits Credits 3000 Cash 3000 Paid partial ammount due on the equipment 1-25-X5 Supplies Expense 600 Cash 600 Purchased construction supplies 1-31-X5 Dividend Cash Company paid a dividend 1500 1500