Answer:
See explanation
Explanation:
Red Flash Photography
Journal Entries
1. Debit Cash $29,000
Credit Common Stock $29,000
(issuing common stock for cash that will increase the cash)
2. Debit Cash $44,000
Debit Accounts Receivable $39,000
Credit Service Revenue $83,000
(Provided services on account and cash)
3. Debit Salaries expense $32,000
Credit Cash $32,000
(Paid salaries to workers)
4. Debit Prepaid Rent $21,000
Credit Cash $21,000
(Paid rent in advance for cash)
5. Debit Supplies $31,000
Credit Accounts payable $31,000
(Purchase supplies on account means liability will increase)
6. Debit Dividends $2,900
Credit Cash $2,900
(Paid cash dividends to the shareholders)
