Monique Lacroix opened a photography and portrait studio on July 1. The studio completed the following transactions during the month:

July 1 Opened the business by depositing 51,000 in a bank account in the name of the business in exchange for 5,100 shares at a nominal value of 10 each.

3 Paid two months' rent in advance for a studio, 2,700 .

5 Transferred to the business personal photography equipment valued at 12,900 in exchange for 1,290 shares of 10 each.

7 Ordered additional photography equipment, 7,500.

8 Purchased office equipment for cash, 5,400 .

10 Received and paid for the photography equipment ordered on July 7, 7,500.

12 Purchased photography supplies on credit, 2,100 .

13 Received cash for previously unbilled portraits, 1,140 .

17 Billed customers for portraits, 2,250 .

19 Paid for half the supplies purchased on July 12, 1,050.

25 Paid the electricity bill for July, 360 .

26 Paid the telephone bill for July, 210.

28 Received payments from the customers billed on July 17,750 .

29 Paid wages to assistant, 1,200 .

30 Received an advance deposit from a customer for work to be done, 150 .

31 Declared and paid a dividend of 3,600 .

REQUIRED 1. Record these transactions in the general journal.

2. Discuss how recognition applies to the transactions of July 7 and 8 and how classification applies to the transactions of July 13 and 30 .