1. Dolly Barton began Barton Office Services in October and during the month completed the following transactions:
a. Invested $10,000 cash and $15,000 of computer equipment in exchange for common stock.
b. Paid $500 cash for an insurance premium covering the next 12 months
c. Completed a word processing assignment for a customer and collected $1,000 cash
d. Paid $200 cash for office supplies
e. Paid $2,000 for October's rent
Prepare journal entries to record the above transactions. Explanations are unnecessary.
2. On Oct 1, 2009, Smith invested $20,000 cash, office equipment costing $15,000, and drafting equipment costing $12,000 into the company in exchange for common stock. Show the general journal entry to record this transaction.
3. Flora Accounting Services completed these transactions in February:
a. Purchased office supplies on account, $300
b. Completed work for a client on credit, $500
c. Paid cash for the office supplies purchased in (a)
d. Completed work for a client and received $800 cash
e. Received $500 cash for the work described in (b)
f. Received $1,000 from a client for accounting services to be performed in March.
Prepare journal entries to record the above transactions. Explanations are not necessary.