Kelly James started a software development business as a sole proprietorship on 3 /1/XX. During the month of March the company had the following transactions: 1/1The owner invested $80,000 cash into the business checking account. In addition, she obtained a business credit card from the same bank. 1/2Office space was rented for $2,800 per month and one months rent was paid in cash. In addition $2,800 in cash was paid as a security deposit on the office space. 1/3A phone system was purchased for $1,500 and installed. The company received an invoice from the company that installed the system for the full amount due and payable on 1/31. 1/4A computer system was purchased for $15,000. $3,000 was paid in cash and a 120 day note with an interest rate of 8% per annum was signed for the balance owed. 1/7Sent a bill to a client for $5,000 for software development that had been completed. 1/10A contract to develop software for a client in the amount of $20,000 was entered into by Kellco. Kellco received $5,000 in cash as a prepayment. 1/15Purchased office supplies in the amount of $325 using the firm's business credit card as payment. 1/18Kellco issued a purchase order to buy office furniture in the amount of $7,500. 1/20Paid an accountant $1,500 to set up an accounting system. 1/25Issued a check to P.G. & E in the amount of $300 to pay for the owner's personal utility bill. 1/28Collected $5,000 from the 1/7 transaction. 1/31Paid the bill received on 1/3 1/31Received a credit card bill for the purchase on 1/15. The due date on the bill was 2/22. Required: Make the necessary journal entries from the information given. Omit the journal descriptions.

Answer rating: 100% (QA)

Here are the journal entries for the transactions Date Account Title Debit Credit 31 Cash 80000 31 B... View the full answer