Prepare journal entries to record the Dec transaction 1Dec B

Prepare journal entries to record the Dec transaction:

1-Dec

Began business by depositing $7500 in a bank account in the name of the company in exchange for

750 shares of $10 per share common stock.

1-Dec

Paid the rent for the current month, $650 .

1-Dec

Paid the premium on a one-year insurance policy, $840 .

1-Dec

Purchased Equipment for $3600 cash.

5-Dec

Purchased office supplies from XYZ Company on account, $300 .

15-Dec

Provided services to customers for $6000 cash.

16-Dec

Provided service to customers ABC Inc. on account, $3400 .

21-Dec

Received $1800 cash from ABC Inc., customer on account.

23-Dec

Paid $170 to XYZ company for supplies purchased on account on December 5 .

28-Dec

Paid wages for the period December 1 through December 28, $5040 .

30-Dec

Declared and paid dividend to stockholders $200 .

1-Dec	Began business by depositing $7500 in a bank account in the name of the company in exchange for
	750 shares of $10 per share common stock.
1-Dec	Paid the rent for the current month, $650 .
1-Dec	Paid the premium on a one-year insurance policy, $840 .
1-Dec	Purchased Equipment for $3600 cash.
5-Dec	Purchased office supplies from XYZ Company on account, $300 .
15-Dec	Provided services to customers for $6000 cash.
16-Dec	Provided service to customers ABC Inc. on account, $3400 .
21-Dec	Received $1800 cash from ABC Inc., customer on account.
23-Dec	Paid $170 to XYZ company for supplies purchased on account on December 5 .
28-Dec	Paid wages for the period December 1 through December 28, $5040 .
30-Dec	Declared and paid dividend to stockholders $200 .

Solution

Bank account Dr.

To common stock a/c

7500

7500

Rent a/c Dr.

to Bank a/c

650

Insurance Premium a/c Dr.

To Bank a/c

840

840

Equipment a/c Dr.

To cash a/c

3600

office supplies a/c Dr.

To XYZ company a/c

300

300

Cash account Dr.

To Sales a/c

6000

6000

ABC Inc a/c Dr.

To sales a/c

3400

3400

Cash a/c Dr

To ABC Inc a/c

1800

1800

XYZ company a/c Dr.

To Bank a/c

170

170

Wages a/c Dr.

To Bank a/c

5040

5040

Dividend a/c Dr.

To bank a/c

200

200

DATE	PARTICULARS	Dr. Amount($)	Cr. Amount($)
1-Dec	Bank account Dr. To common stock a/c	7500	7500
1-Dec	Rent a/c Dr. to Bank a/c	650	650
1-Dec	Insurance Premium a/c Dr. To Bank a/c	840	840
1-Dec	Equipment a/c Dr. To cash a/c	3600	3600
5-Dec	office supplies a/c Dr. To XYZ company a/c	300	300
15-Dec	Cash account Dr. To Sales a/c	6000	6000
16-Dec	ABC Inc a/c Dr. To sales a/c	3400	3400
21-Dec	Cash a/c Dr To ABC Inc a/c	1800	1800
23-Dec	XYZ company a/c Dr. To Bank a/c	170	170
28-Dec	Wages a/c Dr. To Bank a/c	5040	5040
30-Dec	Dividend a/c Dr. To bank a/c	200	200