Problem - Journal Entries
Sebastian Giavinco is the owner of Goal Services. The following transactions need to be recorded for his business during the first month of operations.
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Oct 1
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The owner invested money in the company
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$30,000
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Oct 3
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Received cash for services provided
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$7,800
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Oct 6
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Borrowed cash from the bank
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$12,000
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Oct 6
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Prepaid insurance for one year
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$9,600
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Oct 10
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Paid telephone expenses for the month with cash
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$500
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Oct 12
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Paid interest on bank loan
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$100
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Oct 25
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Paid a portion of bank loan principle
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$1,700
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Oct 28
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Purchased equipment - to be paid later
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$10,000
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Oct 30
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Paid salaries for the month with cash
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$3,900
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Oct 31
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Adjusted prepaid insurance for one month
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$800.00
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Oct 31
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Depreciation on equipment
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$1,000
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Required - Journalize the transactions for Goal Services. Only simple explanations are required.