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following are the transactions of sustain company. june 1 t. james, owner, invested $16,500 cash in sustain company in exchange for common stock. june 2 the company purchased $9,500 of furniture made from reclaimed wood on credit. june 3 the company paid $1,700 cash for a 12 - month prepaid insurance policy on the reclaimed furniture. june 4 the company billed a customer $8,500 for sustainability services provided. june 12 the company paid $9,500 cash toward the payable from the june 2 furniture purchase. june 20 the company collected $8,500 cash for services billed on june 4. june 21 t. james invested an additional $15,500 cash in sustain company in exchange for common stock. june 30 the company received $10,500 cash in advance of providing sustainability services to a customer. prepare general journal entries for the above transactions. view transaction list journal entry worksheet < 1 2 3 4 5 6 7 8 t. james, owner, invested $16,500 cash in sustain company in exchange for common stock. note: enter debits before credits. date general journal debit credit june 01 record entry clear view general journal
Step1: June 1 - Investment
Debit Cash $16,500, Credit Common Stock $16,500
Step2: June 2 - Furniture purchase
Debit Furniture $9,500, Credit Accounts Payable $9,500
Step3: June 3 - Pre - paid insurance
Debit Prepaid Insurance $1,700, Credit Cash $1,700
Step4: June 4 - Billing customer
Debit Accounts Receivable $8,500, Credit Service Revenue $8,500
Step5: June 12 - Payment on payable
Debit Accounts Payable $9,500, Credit Cash $9,500
Step6: June 20 - Collection on receivable
Debit Cash $8,500, Credit Accounts Receivable $8,500
Step7: June 21 - Additional investment
Debit Cash $15,500, Credit Common Stock $15,500
Step8: June 30 - Advance received
Debit Cash $10,500, Credit Unearned Service Revenue $10,500
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| Date | General Journal | Debit | Credit |
|---|---|---|---|
| June 2 | Furniture<br>Accounts Payable | $9,500<br> | <br>$9,500 |
| June 3 | Prepaid Insurance<br>Cash | $1,700<br> | <br>$1,700 |
| June 4 | Accounts Receivable<br>Service Revenue | $8,500<br> | <br>$8,500 |
| June 12 | Accounts Payable<br>Cash | $9,500<br> | <br>$9,500 |
| June 20 | Cash<br>Accounts Receivable | $8,500<br> | <br>$8,500 |
| June 21 | Cash<br>Common Stock | $15,500<br> | <br>$15,500 |
| June 30 | Cash<br>Unearned Service Revenue | $10,500<br> | <br>$10,500 |