The Dover Direct Insurance Agency began operations on June 1, 2015. In the month of June, the

Question:

The Dover Direct Insurance Agency began operations on June 1, 2015. In the month of June, the following transactions occurred: June 2: Dover Direct’s owner invested $ 80,000 (the of the stock) cash and acquired 4,000 shares of common stock. June 8: Dover Direct purchased $ 8,000 of office supplies with cash. June 15: Dover Direct paid employees $ 8,000 in cash for the biweekly payroll. June 20: Dover Direct acquired new office furniture for $ 25,000. The Company paid $ 10,000 in cash and financed the remainder by issuing a $ 15,000 note payable to the vendor. June 22: Dover Direct collected $ 120,000 in sales revenue for the month, all of which was paid in cash.
Assets
100 Cash
101
102 Office Supplies
121 Furniture
Liabilities
200
210 Notes Payable
Stockholders’ Equity
300
Revenues 400 Sales Revenue
Expenses
501 Wage Expense
Prepare the journal entries in the general journal format for Dover’s transactions using appropriate account numbers. Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...