Prepare journal entries

Question

Prepare journal entries for the following transactions that occurred during January 2020:

January 3 Stan Adams opened a landscaping business by investing $60,000 cash and equipment having a $40,000 fair value.

4 Purchased office supplies on credit for $340.

6 Received $5,200 for providing landscaping services to a customer.

15 Paid $200 regarding the office supplies purchase of January 4.

16 Purchased $700 of office supplies on account.

30 Paid the balance owing regarding the office supplies purchase of January 4.

Answer 1

Dear Harman S.

Double entries are as follows:

January 3, 2020:

Dr. Cash $60,000

Dr. Equipment $40,000

Cr. Opening Balance Equity $100,000

January 4, 2020:

Dr. Office Supplies $340

Cr. Supplies Payable $340

January 6, 2020:

Dr. Cash $5,200

Cr. Service Revenue $5,200

January 15, 2020:

Dr. Supplies Payable $200

Cr. Cash $200

January 16, 2020:

Dr. Office Supplies $700

Cr. Supplies Payable $700

January 30, 2020:

Dr. Supplies Payable $140

Cr. Cash $140

I hope this will help. Thank you