Selected transactions for Sheffield, an interior decorator corporation, in its first month of business, are as follows. 1. Issued stock to investors for $14,800 in cash.
2. Purchased used car for $10,400 cash for use in business.
3. Purchased supplies on account for $200.
4. Billed customers $4,250 for services performed.
5. Paid $200 cash for advertising at the start of the business.
6. Received $1,480 cash from customers billed in transaction (4).
7. Paid creditor $230 cash on account.
8. Paid dividends of $310 cash to stockholders.

Required:
Journalize the transactions.

1. Issued stock to investors for $14,800 in cash.

Account                  Debit                Credit

Cash                       $14,800

Common Stock                               $14,800

2. Purchased used car for $10,400 cash for use in business.

Account                      Debit                Credit

Cash                                                    $14,400

Vehicle                       $14,400

3. Purchased supplies on account for $200.

Account                       Debit                Credit

Supplies                      $200

Accounts Payable                                $200

4. Billed customers $4,250 for services performed.

Account                         Debit                Credit

Service Revenue          $4,250

Accounts Receivable                             $4,250

5. Paid $200 cash for advertising at the start of the business.

Account                         Debit                Credit

Advertising Expense    $200

Cash                                                        $200

6. Received $1,480 cash from customers billed in transaction (4).

Account                         Debit                Credit

Cash                              $1,480

Accounts Receivable                            $1,480

7. Paid creditor $230 cash on account.

Account                         Debit                Credit

Cash                                                        $230

Accounts Payable        $230

8. Paid dividends of $310 cash to stockholders.

Account                         Debit                Credit

Dividends Payable       $310

Cash                                                        $310

mauve company permits employees to occasionally use the copying machine for personal purposes

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.