On October 1, 20X1, Helen Kennedy opened an advertising agency. Please prepare the journal entry...
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On October 1, 20X1, Helen Kennedy opened an advertising agency. Please prepare the journal entry for the following transactions and post to the general ledger. The first journal entry has been done for you.
DATE TRANSACTIONS Oct.
1 Helen Kennedy invested $58,000 cash in the business. 2 Paid October office rent of $2,900; issued Check 1001. 5 Purchased desks and other office furniture for $14,800 from Office Furniture Mart, Inc.; received Invoice 6704 payable in 60 days. 6 Issued Check 1002 for $3,100 to purchase art equipment. 7 Purchased supplies for $1,450; paid with Check 1003. 10 Issued Check 1004 for $580 for office cleaning service. 12 Performed services for $4,000 in cash and $1,800 on credit. (Use a compound entry.) 15 Returned damaged supplies for a cash refund of $380. 18 Purchased a computer for $2,900 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1005 for a $1,700 down payment, with the balance payable in 30 days. (Use one compound entry.) 20 Issued Check 1006 for $7,400 to Office Furniture Mart, Inc., as payment on account for Invoice 6704.
GENERAL JOURNAL
No. Date Account DR CR
1 10/1 Cash 58,000
Helen Kennedy, Capital 58,000
Owner invested in the business.
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