Reference no: EM131821154

Mr.X launched a new business called mr.x business services that began operations on Jan. 1,2015. The ff. transactions were completed by the company during the first month, Jan 1 Mr x invested $500,000 in the business for operations.

1 Paid $30,000 cash for rent for the next six months

1 Borrowed $ 175,000 from First National Bank.

1 Paid $6,000 for insurance for the first quarter.

2 Purchased $15,000 worth of equipment from skyline office equipment paying $5,000 cash with the balance being paid for 20 days.

4 Paid $1,500 cash to advertise the grand opening of the business

5 Received $3,500 for services provided to Remington Steele.

6 Mr.X donated $7,500 worth the Computer Equipment to his business.

8 Performed business services for Hush Puffy Co. and received $1,750 in a cash payment.

9 Performed $22, 500 of business services for PDQ Company on credit.

10 Paid $750 in cash to Puffy Cleaning Services for services provided.

11 Received $8,500 from PDQ Company for business services performed on January 9.

12 Purchased $1,300 of Office Equipment and $700 of Office Supplies on credit.

14 Performed $2,500 of business services on credit for Johnson Realty.

15 Earned Employment fees of $1,500 which will be paid by 31 March 2015

20 Paid balance due to Skyline for the equipment purchased on January 2nd.

21 Received $1,250 in cash for services performed for Johnson Realty on June 22.

22 Received computer equipment worth $5,000 for services rendered to Zerox Co.

24 Accrued $750 of Interest Revenue from the bank.

25 Purchased $2,000 of Office Supplies on credit.

30 Paid $250 cash for this month's telephone bill.

30 Paid $750 cash for utilities.

31 Paid $ 5,500 for employees wages for the month.

31 Expensed January's insurance payment.

31 Expensed January's rent out of the prepaid account

Required: Determine the accounts affected by the journal entries above and prepare the journal entries.