Answer:
The journal entry for each transaction is given below.
1. March 12 Provide services to customers, $60,000, of which $21,000 is on account.
Debit Cash $ 21,000
Debit Receivable $ 39,000
Credit Revenue $ 60,000
2. May 2 Collect on accounts receivable, $18,000.
Debit Cash $ 18,000
Credit Receivable $ 18,000
3. June 30 Issue shares of common stock in exchange for $6,000 cash.
Debit Cash $ 6,000
Credit Common Stock $ 6,000
4. August 1 Pay salaries of $7,500 from 2020 (prior year).
Debit Salaries Expense $ 7,500
Credit Cash $ 7,500
5. September 25 Pay repairs and maintenance expenses, $13,000.
Debit Repairs and maintenance expenses $ 13,000
Credit Cash $ 13,000
6. October 19 Purchase equipment for $8,000 cash.
Debit Equipment Asset $ 8,000
Credit Cash $ 8,000
7. December 30 Pay $1,100 cash dividends to stockholders.
Debit Dividend payable/Retain Earning $ 1,100
Credit Cash $ 1,100
