Question

Data for Sunland Company, interior decorating, are presented as follows.

Jan. 2 Stockholders invested $18,337 cash in the business in exchange for common stock.
3 Purchased used car for $10,024 cash for use in the business.
9 Purchased supplies on account for $611.
11 Billed customers $2,200 for services performed.
16 Paid $244 cash for advertising.
20 Received $954 cash from customers billed on January 11.
23 Paid creditor $367 cash on balance owed.
28 Declared and paid a $611 cash dividend.
Required:
Journalize the transactions.

Answer 1

Jan. 2 Stockholders invested $18,337 cash in the business in exchange for common stock.

Account Debit Credit

Cash $18,337

Common Stock $18,337

3 Purchased used car for $10,024 cash for use in the business.

Account Debit Credit

Vehicle $10,024

Cash $10,024

9 Purchased supplies on account for $611.

Account Debit Credit

Supplies Expense $611

Accounts Payable $611

11 Billed customers $2,200 for services performed.

Account Debit Credit

Accounts Receivable $2,200

Service Revenue $2,200

16 Paid $244 cash for advertising.

Account Debit Credit

Advertising Expense $244

Cash $244

20 Received $954 cash from customers billed on January 11.

Account Debit Credit

Cash $954

Accounts Receivable $954

23 Paid creditor $367 cash on balance owed.

Account Debit Credit

Accounts Payable $367

Cash $367

28 Declared and paid a $611 cash dividend.

Account Debit Credit

Dividends $611

Cash $611