Answer and Explanation:
The Journal entries are shown below:-
1. Cash Dr, $14,500
To Common stock $14,500
(Being Common Stock issued is recorded)
2. Furniture Dr, $7,500
To Accounts Payable $7,500
(Being Furniture purchased on Credit is recorded)
3. Prepaid insurance Dr, $1,300
To Cash $1,300
(Being Prepaid Insurance Paid is recorded)
4. Accounts Receivable Dr, $6,500
To Service Revenue $6,500
(Being Revenue earned is recorded)
5. Accounts Payable Dr, $7,500
To Cash $7,500
(Being paid for Outstanding balance in payable is recorded)
6. Cash Dr, $6,500
To Accounts Receivable $6,500
(Being received from Accounts Receivables is recorded)
7. Cash Dr, $13,500
To Common stock $13,500
(Being common Stock issued is recorded)
8. Cash Dr, $8,500
To Unearned Service Revenue $8,500
(Being advance received for services is recorded)
Adjusting entries on month-end
Insurance Expense Dr, $108.33 ($1,300 ÷ 12)
To Prepaid Insurance $108.33
(Being insurance expired is recorded)
