Answer:
Ona Cloud Corporation (OCC)
Journal Entries:
a. September 1:
Establishment of Ona Cloud Corporation.
b. September 1:
Debit Cash Account $15,000
Credit Common Stock $15,000
To record the common stock contributed by Pat Hopkins.
c. September 8:
Debit Cash Account $23,000
Credit Notes Payable $23,000
To record the bank loan payable in two years' time.
d. September 10:
Debit Equipment $20,500
Credit Cash Account $20,500
To record the purchase of computer equipment.
e. September 15:
Debit Supplies $1,650
Credit Accounts Payable $1,650
To record the purchase of supplies on account.
e. September 16:
Debit Rent Expense $2,250
Credit Cash Account $2,250
To record the payment for September rent.
e. September 22;
Debit Cash $7,500
Debit Accounts Receivable $2,750
Credit Service Revenue $10,250
To record the provision of services through September 22.
f. September 28:
Debit Utilities Expense $325
Credit Cash Account $325
To record payment for internet and phone service for the month.
g. September 29:
Debit Wages Expense $5,650
Credit Cash Account $5,650
To record the payment of wages for the month.
i. September 30:
Debit Utilities Expense $730
Credit Utilities Payable $730
To accrue unpaid electric utilities bill for the month.
Explanation:
Ona uses the general journal to record its business transactions initially as they occur from one day to another. Journal entries identify the accounts involved in each transaction. It records the account to be debited and the account to be credited in the general ledger.
