Chapter 2, Problem 2.16E

Use the following information to answer Exercises E2-16 and E2-17.

The following transactions occurred for London Engineering:

Jul. 2	Received $12,000 contribution from Brett London in exchange for common stock.
4	Paid utilities expense of $410.
5	Purchased equipment on account, $2,200.
10	Performed services for a client on account, $2,800.
12	Borrowed $7,500 cash, signing a notes payable .
19	Cash dividends of $750 were paid to stockholders.
21	Purchased office supplies for $860 and paid cash .
27	Paid the liability from July 5.

Analyzing and journalizing transactions

Journalize the transactions of London Engineering. Include an explanation with each journal entry. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Equipment; Accounts Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Utilities Expense.