Question

Following are the transactions of Sustain Company. June1 T. James, owner, invested $11,000 cash in Sustain Company in exchange for common stock. 2 The company purchased $4,000 of furniture made from reclaimed wood on credit. 3 The company paid $600 cash for a 12-month insurance policy on the reclaimed furniture. 4 The company billed a customer $3,000 in fees earned from preparing a sustainability report. 12 The company paid $4,000 cash toward the payable from the June 2 furniture purchase. 20 The company collected $3,000 cash for fees billed on June 4. 21 T.James invested an additional $10,000 cash in Sustain Company in exchange for common stock. 30 The company received $5,000 cash from a client for sustainability services for the next 3 months. Prepare general journal entries for the above transactions.

Answer 1

Answer:

June 1 T. James, owner, invested $11,000 cash in Sustain Company in exchange for common stock.

Dr Cash 11,000

    Cr Commons stock 11,000

June 2 The company purchased $4,000 of furniture made from reclaimed wood on credit.

Dr Furniture 4,000

    Cr Accounts payable 4,000

June 3 The company paid $600 cash for a 12-month insurance policy on the reclaimed furniture.

Dr Prepaid insurance 600

    Cr Cash 600

June 4 The company billed a customer $3,000 in fees earned from preparing a sustainability report.

Dr Accounts receivable 3,000

    Cr Service revenue 3,000

June 12 The company paid $4,000 cash toward the payable from the June 2 furniture purchase.

Dr Accounts payable 4,000

    Cr Cash 4,000

June 20 The company collected $3,000 cash for fees billed on June 4.

Dr Cash 3,000

    Cr Accounts receivable 3,000

June 21 T.James invested an additional $10,000 cash in Sustain Company in exchange for common stock.

Dr Cash 10,000

    Cr Common stock 10,000

June 30 The company received $5,000 cash from a client for sustainability services for the next 3 months.

Dr Cash 5,000

    Cr Deferred revenue 5,000