Chapter 2, Problem 60APSA

Problem 2-60A Journalizing and Posting Transactions

Cincinnati Painting Service Inc. specializes in painting houses. During June, its first month of operations, Cincinnati Painting engaged in the following transactions:

June 1 Issued common stock for $25,000.

3 Purchased painting supplies from River City Supply for $1,675 on credit,

8 Purchased a used truck from Hamilton Used Car Sales for 513300. paying 31,500 down and agreeing to pay the balance in 6 months.

14 Paid $4230 to hourly employers for work performed in June.

22 Billed various customers a total of $10,340 for June painting jobs.

26 Received $6.100 cash from James Elton for a house painting job completed and previously billed.

29 Collected $52.0 from Albert Montgomery on completion of a 1-day painting job. This amount is not included in the June 22 bills.

Required:

1. Prepare a journal entry for each transaction.

2. Post the journal entries to the appropriate T-accounts.