Answer:
Belle Co.
General Journal Entries
1. Debit Cash $6,000
Debit Equipment $7,600
Debit Web Servers $12,000
Credit Common Stock $25,600
To record the assets exchanged for common stock by D. Belle.
2. Debit Prepaid Insurance $4,800
Credit Cash $4,800
To record the prepayment of insurance coverage.
3. Debit Supplies $900
Credit Accounts Payable $900
To record the purchase of supplies on account.
4. Debit Selling Expenses $800
Credit Cash $800
To record the payment of selling expenses for cash.
5. Debit Cash $4,500
Credit Service Revenue $4,500
To record the receipt of cash for services rendered.
6. Debit Accounts Payable $900
Credit Cash $900
To record the payment on account.
7. Debit Equipment $3,400
Credit Cash $3,400
To record the payment for the purchase of equipment.
Explanation:
a) Data and Transaction Analysis:
1. Cash $6,000 Equipment $7,600 Web Servers $12,000 Common Stock $25,600
2. Prepaid Insurance $4,800 Cash $4,800
3. Supplies $900 Accounts Payable $900
4. Selling Expenses $800 Cash $800
5. Cash $4,500 Service Revenue $4,500
6. Accounts Payable $900 Cash $900
7. Equipment $3,400 Cash $3,400
