Answer:
cash 18,000
common stock 18,000
to record issuance of stock for cash
car 19,500
cash 2,500
note payable 17,000 ( 19,500 - 2,500)
to record purchase of automobile
rent expense 3,150
cash 3,150
to record payment of rent
supplies 1,450
cash 1,450
to record payment of supplies
office equipment 6,500
account payable 6,500
to record purchase of equipment
prepaid insurance 2,400
cash 2,400
to record purchase of insurance for the whole year
cash 12,000
service reveue 12,000
to record service earned and collected
account payable 1,800
cash 1,800
to record payment of account
miscellaneous expense 375
cash 375
to record miscellaneous expense
blueprint expense 2,500
blueprint payable 2,500
to record invouce for blueprint
account receivable 15,650
service revenue 16,650
to record earned services but not collected.
salaries expense 2,800
cash 2,800
to record payment of assistant salary
miscellaneous expense 200
cash 200
to record miscellaneous expense
note payable 300
cash 300
to record installment of note for car
car maintenance expense 550
cash 550
to record several expense associate with the car
Explanation:
We will post each entry according to the accounting principles:
debit = credit
and to reflect the reality
