1. Stockholders invest $90,000 cash to start the business. 2. Purchased three digital copy machines for $400,000, paying $118,000 cash and signing a 5-year, 6% note for the remainder.
3. Purchased $5,500 paper supplies on credit.
4. Cash received for photocopy services amounted to $8,400.
5. Paid $500 cash for radio advertising.
6. Paid $800 on account for paper supplies purchased in transaction 3.
7. Dividends of $1,600 were paid to stockholders.
8. Paid $1,200 cash for rent for the current month.
9. Received $2,200 cash advance from a customer for future copying.
10. Billed a customer for $500 for photocopy services completed.
No. Account Titles and Descriptions Debit Credit
1.
2.
3.
4.
5.

S/n    General journal       Debit          Credit

1.        Cash                        $90,000

             Common stock                      $90,000

2.       Equipment                $400,000  

               Cash                                      $180,000

                Notes payable                     $282,000

3         Supplies                    $5,500  

                 Account payable                  $5,500

4.         Cash                           $8,400

                 Service revenue                   $8,400

5.        Advertising expense   $500

                 Cash                                       $500

6.          Account payable        $800

                  Cash                                        $800

7.          Dividends                     $1,600

                  Cash                                        $1,600

8.         Rent expense                $1,200  

                    Cash                                       $1,200

9.           Cash                             $2,200

                    Unearned service revenue    $2,200

10.           Account receivable     $500

                      Service revenue                    $500

answer; tech (a) is correct;