Required: Make the necessary journal entries from theinformation given. Some dates do not require a journal entry. Ondates that do not require an entry say “no entry required”. Omitthe journal descriptions. Use the journal paper on the next page tomake your journal entries.
2. Dominic Bueno started a delivery business as a soleproprietorship on 7/1/XX. During the month of July the company hadthe following transactions:
7/1 The owner invested $100,000 in cash into the businesschecking account. 7/1 Rented a garage with office space for $5,000per month and paid the first month’s rent by check.
7/2 A new 2 ton delivery truck was purchased by the company. Thetotal purchase price including taxes, license and fees was$115,000. The company paid $15,000 by check as a down payment andsigned a long-term note for five years at an interest rate of 9%per year for the balance that was owed.
7/6 The company purchased a desktop computer and a printer for atotal price of $1,150 and paid by check for the computerequipment.
7/8 Picked up and delivered machinery for a client. Billed $350for the delivery service with terms “due on receipt”.
7/10 Received a bill for legal services in the amount of $1,200.7/12 Entered into a $125,000 one year contract with a client toprovide delivery services.
7/14 Received the amount owed from the 7/8 transaction.
7/15 Picked up and delivered furniture for a client and billedthe client $565 with terms of “due on receipt”.
7/15 Wrote a check to Mr. Bueno for personal use in the amountof $2,000.
7/18 Purchased diesel fuel from a bulk fuel distributor oncredit. The total amount owed for the fuel was $579 which thecompany will receive a bill for at the end of the month.
7/21 Delivered machinery under the terms of the contract signedon 7/12. The contract terms required that any amounts owed fordelivery services will be billed for at the end of each month withterms of net 30 days.
7/31 Received the bill for the purchase of diesel fuel on 7/18with terms of net 30 days.
7/31 Received a utility Bill in the amount of $475 and paid thebill immediately by check.
7/31 Billed the client for the delivery service provided on 7/21in the amount of $2,100.
