Answer and Explanation:
The Journal entry is shown below:-
1. Cash Dr, 50,000
To Common Stock 50,000
(Being issuance of common stock is recorded)
2. Land Dr, 10,000
Buildings Dr, 22,000
Equipment Dr, 6,000
To Cash 38,000
(Being fixed assets is recorded)
3. Dr. Advertising Expense Dr, 1,600
To Cash $1,600
(Being advertisement expenses is recorded)
4. Prepaid Insurance Dr, $1,480
To Cash $1,480
(Being prepaid insurance is recorded)
5.Equipment Dr, $2,500
To Accounts Payable $2,500
(Being purchase of equipment is recorded)
6. Cash $1,200
To Service Revenue $1,200
(Being service revenue is recorded)
7. Dividends Dr, $500
To Cash $500
(Being dividend is recorded)
8. Salaries and Wages Expense Dr, $900
To Cash 900
(Being salaries and wages expenses is recorded)
9. Accounts Payable Dr, 2,500
To Cash 2,500
(Being accounts payable is recorded)
10. Cash Dr, $750
To Service Revenue $750
(Being service revenue is recorded)
