Answer:
Jun-01
Dr Cash 18,500
Cr Common Stock T. James 18,500
Jun-02
Dr Furniture 11,500
Cr Account Payable 11,500
Jun-03
Dr Prepaid Insurance 2,100
Cr Cash 2,100
Jun-04
Dr Account Receivable 10,500
Cr Sales 10,500
Jun-12
Dr Account Payable 11,500
Cr Cash 11,500
Jun-20
Dr Cash 10,500
Cr Account Receivable 10,500
Jun-21
Dr Cash 17,500
Cr Common Stock T. James 17,500
Jun-30
Dr Cash 12,500
Cr Unearned Income 12,500
Explanation:
Preparation of Journal entries
Jun-01
Dr Cash 18,500
Cr Common Stock T. James 18,500
(Invested $18,500 as capital contribution)
Jun-02
Dr Furniture 11,500
Cr Account Payable 11,500
(Purchased furniture on credit)
Jun-03
Dr Prepaid Insurance 2,100
Cr Cash 2,100
(Cash Paid for 12 month insurance)
Jun-04
Dr Account Receivable 10,500
Cr Sales 10,500
(Billed customer )
Jun-12
Dr Account Payable 11,500
Cr Cash 11,500
(Cash paid to reclaimed wood)
Jun-20
Dr Cash 10,500
Cr Account Receivable 10,500
(Cash collected form customer)
Jun-21
Dr Cash 17,500
Cr Common Stock T. James 17,500
(Addition capital contribution)
Jun-30
Dr Cash 12,500
Cr Unearned Income 12,500
(Received advance for service to be performed)
