Principe Technology Solutions, Inc., completed the following transactions during August 2012, its first month of operations:
Aug 1 Received cash of $48,000 and issued common stock.
2 Purchased supplies of $500 on account.
4 Paid $47,000 cash for a building.
6 Performed service for customers and received cash, $4,400.
9 Paid $200 on accounts payable.
17 Performed service for customers on account, $2,200.
23 Received $1,600 cash from a customer on account.
31 Paid the following expenses: salary, $1,900; rent, $700.
Requirement
1. Record the preceding transactions in the journal of Principe Technology Solutions. Include an explanation for each entry, as illustrated in the chapter. Use the following accounts: Cash, Accounts receivable, Supplies, Building, Accounts payable, Common stock, Service revenue, Salary expense, and Rent expense.