Using the information provided in E4- 5, post Dover Direct Insurance Agency’s journal entries to the general ledger for all relevant accounts for the month ended June 30, 2015. You do not need to provide explanations.
In E4- 5
The Dover Direct Insurance Agency began operations on June 1, 2015. In the month of June, the following transactions occurred: June 2: Dover Direct’s owner invested $ 80,000 (the par value of the stock) cash and acquired 4,000 shares of common stock. June 8: Dover Direct purchased $ 8,000 of office supplies with cash. June 15: Dover Direct paid employees $ 8,000 in cash for the biweekly payroll. June 20: Dover Direct acquired new office furniture for $ 25,000. The Company paid $ 10,000 in cash and financed the remainder by issuing a $ 15,000 note payable to the vendor. June 22: Dover Direct collected $ 120,000 in sales revenue for the month, all of which was paid in cash.
Assets
100 Cash
101 Accounts Receivable
102 Office Supplies
121 Furniture
Liabilities
200 Accounts Payable
210 Notes Payable
Stockholders’ Equity
300 Common Stock
Revenues 400 Sales Revenue
Expenses
501 Wage Expense