9. In the journal provided, prepare journal entries (in good


Question Description:

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9. In the journal provided, prepare journal entries (in good form) for the following transactions. If no entry is required, write “no entry.” Omit explanations. May 1 Investors opened a dry cleaning service, called Junction Cleaners, by depositing $100,000 into a business bank account and receiving 50,000 shares of $2 par value stock in exchange. 3 Paid two years’ rent in advance, $11,200. 6 Purchased dry cleaning equipment for $36,000. Paid $14,000 in cash, the remainder to be paid in two weeks. 10 Hired a worker, to be paid $550 per week. 17 Paid the worker’s weekly wage. 17 Recorded cash received for services rendered during the week, $5,000. 20 Paid for the remainder of the equipment purchased on May 6. 21 Received $240 in advance of cleaning and boxing a wedding gown. 23 Performed $390 of dry cleaning services for Tuxedos Unlimited. It will remit payment in three days. 24 Paid the weekly wages. 26 Received payment from Tuxedos Unlimited. 30 Received a telephone bill for $114, which will be paid in two weeks.

Answer

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