Reference no: EM131809838
Problem
Prepare the journal entries for each of these transactions.
On August 1, 2016, John established John's Auto Service, Inc. During the month of August, the following transactions occurred:
a. John used $30,000 from his personal funds to purchase common stock from the business
b. John rented a garage for $1,200 per month, paying the first and last month's rent plus a security deposit of $1,000
c. John arranged for business insurance costing $1,500 every six months effective July 2, 2016
d. John billed Louie Stark on account for truck repairs totaling $1,100
e. Tommy Jones paid John for repairs on his car totaling $825
f. John paid half of his bill for the business insurance
g. John purchased parts for the Stark and Jones vehicles on account for $685.
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