Nancy Tercek started a delivery service, Sheffield Corp., on June 1, 2019. The f

Question

Nancy Tercek started a delivery service, Sheffield Corp., on June 1, 2019. The following transactions occurred during the month of June. June 1 Stockholders invested $16,900 cash in the business in exchange for common stock. 2 3 Purchased a used van for deliveries for $14,300. Nancy paid $3,900 cash and signed a note payable for the remaining balance. Paid $300 for office rent for the month. 5 Performed $4,600 of services on account 9 Declared and paid $400 in cash dividends. 12 Purchased supplies for $300 on account. 15 Received a cash payment of $1,300 for services performed on June S 17 Purchased gasoline for $200 on account. 20 Received $1,400 cash for services performed. 23 Made a cash payment of $500 on the note payable. 26 Paid $100 for utilities. 29 Paid for the gasoline purchased on account on June 17. 30 Paid $2,210 for employee salaries.

Explanation / Answer

Journal entries :

Date accounts & explanation debit credit June 1 Cash 16900 Common stock 16900 (To record issue common stock) June 2 Delivery van 14300 Cash 3900 Notes payable 10400 (To record delivery van purchased) June 3 Rent expenses 300 Cash 300 (To record rent paid) June 5 Account receivable 4600 Service revenue 4600 (To record service performed) June 9 Dividend a/c 400 Cash a/c 400 (To record dividend paid) June 12 Supplies 300 Account payable 300 (To record purchase supplies) June 15 Cash 1300 Account receivable 1300 (To record cash received from receivable) June 17 Gasoline a/c 200 Account payable 200 (To record gasoline purchased) June 20 Cash 1400 Service revenue 1400 (To record service performed) June 23 Notes payable 500 Cash a/c 500 (To record cash paid to notes payable) June 26 Utilities expenses a/c 100 Cash a/c 100 (To record utilities paid) June 29 Account payable 200 Cash a/c 200 (To record amount paid) June 30 Salaries expenses a/c 2210 Cash a/c 2210 (To record salaries paid)

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