Step 1: Journalize the following transactions.
Enter the following on page 1 of the general journal.
June 1
J. Harris contributes cash of $50,000 and accounts receivable of $20,000 to a new partnership,
Top Tier Interior Design. S. Grant contributes $12,000 cash and $1,000 of supplies to the
partnership. The partners agree that $1,500 is a reasonable amount for the allowance for
doubtful accounts for the contributed accounts receivable.
1 Paid rent for the June through August, $3,000.
2 Purchased equipment paying cash, $5,000.
2 Purchased a used van for $30,000. The partnership paid $10,000 cash as a down payment
and signed a note for the remainder.
6 Received an advance payment of $9,000 for services to be provided in the future.
10 Purchased supplies on credit, $700.
15 Received cash for job completed, $15,550.
20 Recorded jobs completed on account and sent invoices to customers, $12,200.
23 Received an invoice in the mail for van-related expenses, to be paid in September $1,200.
28 Paid miscellaneous expenses, $200.
28 Paid utilities expense, $300.
