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    2-1A Basic Journal Entries - New Company: June 1

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    Ryoma Echizen
    Joe invested $10,000 cash and $20,000 in equipment for 500 shares. Throughout June, Joe paid rent, purchased equipment, paid salaries and dividends, billed and received payment for repairs, and received partial payment from a customer.

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    2-1A Basic Journal Entries - New Company: June 1

    Uploaded by

    Ryoma Echizen
    19 views1 page
    Joe invested $10,000 cash and $20,000 in equipment for 500 shares. Throughout June, Joe paid rent, purchased equipment, paid salaries and dividends, billed and received payment for repairs, and received partial payment from a customer.

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    FAR6

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    Joe invested $10,000 cash and $20,000 in equipment for 500 shares. Throughout June, Joe paid rent, purchased equipment, paid salaries and dividends, billed and received payment for repairs, and received partial payment from a customer.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    19 views1 page

    2-1A Basic Journal Entries - New Company: June 1

    Uploaded by

    Ryoma Echizen
    Joe invested $10,000 cash and $20,000 in equipment for 500 shares. Throughout June, Joe paid rent, purchased equipment, paid salaries and dividends, billed and received payment for repairs, and received partial payment from a customer.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    2-1A Basic Journal Entries – New Company

    Joe’s Car Repairs started operating on June 1. The following transactions occurred during June:

    June 1 Joe invested $10,000 cash and invested equipment valued at $20,000 in exchange for
    500 common shares.
    June 2
    Paid rent on a small downtown garage for $2,500 (cash) to cover the month of June.

    June 3 Purchased equipment on account. $8,000 is due to be paid on July 3.

    June 6 Paid $100 to sponsor a local sports team.

    June 10 Paid $250 cash dividend to shareholders.

    June 14 Paid employees’ salaries of $2,000.


    June 15
    Performed car repair work for the first two weeks of June. Billed and received
    $7,000.
    June 16
    Performed car repair work for customer #233 - $1,000. The customer did not pay but
    agreed to pay within 30 days.

    June 22 Paid for the equipment purchase from June 3.

    June 26 Received one half of the amount owed from the June 16 transaction.

    June 30 Paid employees’ salaries of $2,000.

    June 30 Received a telephone bill for $125 for June. Not yet paid.

    Required:

    Record all necessary journal entries based on the transactions above.

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