Cincinnati Painting Service Inc. specializes in painting houses. During June, its first month of operations, Cincinnati Painting engaged in the following transactions:
June 1 Issued common stock for $10,000
3 Purchased painting supplies from River City Supply for $1,125 on credit
8 Purchased a used truck from Hamilton Used Car Sales for $8,700, paying $2,000 down and agreeing to pay the balance in six months
14 Paid $3,960 to hourly employees for work performed in June
22 Billed various customers a total of $9,430 for June painting jobs
26 Received $5,800 cash from James Eaton for a house painting job completed and billed in May
29 Collected $450 from Albert Montgomery on completion of a one-day painting job. This amount is not included in the June 22 bills.
Required:
1. Prepare a journal entry for each transaction.
2. Post the journal entries to Cincinnati Painting’s ledger accounts.