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Nicole Brighten started a painting business in November. The following are transactions for the month of November.
Instructions :
Problem 1: Create journal entries to record the transactions during the month of November detailed below. You may omit explanations of the transactions.
1. Nicole started the business by investing cash of $20,000, equipment with a fair value of $5,000 and painting supplies with a fair value of $800.
2. Entered into a painting contract with a client for a total of $2,500 that provided a deposit of $500 prior to commencing any work.
3. Purchased painting supplies for $320 on account.
4. Received cash of $1,200 for painting services rendered.
5. Paid for one year insurance in advance, $2,400.
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