Task: Journal Entries
Prepare the necessary general journal entries for the month of October for Stringer Company for each situation given below.
Oct 1 Started computer business by selling $50,000 of common stock.
Oct. 5 Paid operating expenses as follows: $4,000 Salaries Expense, $2,000 Rent Expense, $500 Utilities Expense.
Oct. 8 Purchased inventory supplies for $25,000 on account.
Oct. 12 Borrowed $25,000 from Sun Bank signing an 8%, 6-month note.
Oct. 15 Received $3,500 cash for computer services to be completed on October 30th.
Oct. 20 Sold merchandise for $20,000 to Adder Company on account.
Oct. 22 Purchased a 2-year insurance policy for $4,400 cash.
Oct. 29 Purchased office equipment for $15,000 paying $4,000 in cash and the remainder on account.
Oct 30 Paid salaries expense of $4,800 for the October payroll.