Answer:
Journal Entries:
Dec. 1 Debit Cash $7,800
Credit Common stock $7,800
To record the issuance of common stock for cash.
Dec. 7 Debit Equipment $1,700
Credit Accounts Payable $1,700
To record the purchase of equipment on account.
Dec. 14 Debit Land $20,000
Credit Cash $20,000
To record the payment for land.
Dec. 17 Debit Office Rent expenses $1,700
Debit Salaries expenses $1,500
Debit Utilities expense $90
Credit Cash $3,290
To record the payment for cash expenses.
Dec. 23 Debit Cash dividends $2,600
Credit Cash $2,600
To record the payment of cash dividends.
Dec. 26 Debit Cash $5,000
Credit Service revenue $5,000
To record the receipt of cash for earned services.
Explanation:
a) Data and Transactions Analysis:
Dec. 1 Cash $7,800 Common stock $7,800
Dec. 7 Equipment $1,700 Accounts Payable $1,700
Dec. 14 Land $20,000 Cash $20,000
Dec. 17 Office Rent expenses $1,700 Salaries expenses $1,500 Utilities expense $90 Cash $3,290
Dec. 23 Cash dividends $2,600 Cash $2,600
Dec. 26 Cash $5,000 Service revenue $5,000
