Question

Mark West started his own auto repair services firm, "West Auto Repairs" on June 1, 2003. The following
selected events and transactions occurred during June:

June 1 Invested $80000 cash in the business in exchange for common stock.
4 Purchased equipment for $30000 from Watson Company paying $10000
cash, and signing a note payable to Watson for $20000.
9 Purchased supplies for $4800 from Solo Company, paying $2000 cash with
the balance on account.
12 Purchased a one-year insurance policy for $3600 cash.
15 Received $4000 cash in advance from Clark Company to provide
maintenance services starting July 1.
17 Completed services for Madison Company for $9000 and received $3000
cash, with the balance on account.
20 Paid $1000 to Solo Company for the supplies purchased on account on
June 9.
26 Collected $2000 from Madison Company for the services provided on
account on June 17.
29 Declared and paid a cash dividends of $1500.
31 Paid the following expenses in cash: wages $2300, utilities $400, and rent
$800.

Instructions:
1. Journalize the June transactions.
2. Post only the June 4 transaction to the ledger accounts (use a T-account). The following account
numbers are extracted from the company chart of accounts: Cash no. 101, Equipment 128, and Notes
Payable 210

General Journal
J1
Date Account Titles and Explanation Ref. Debit Credit
June 1 Cash
Common stock

4 Equip 3000
Cash 10000
note payable 20000

9 Supplies 4800
Cash 2000
Accounts payable 2800

12 Prepare Insurance 3600

cash 3600
15 Cash 4000
Unearned revenue 4000

17 Cash 3000
account receivable 6000
serves revenue 9000

20 Account payable 1000

cash 1000

26 Cash 2000
Accounts receivable 2000

29 Divi
cash

31 Wages 2300
Utility 400
rent 800
cash 3500