Answer and Explanation:
The Journal entry is shown below:-
1. Cash Dr, $40,000
To Common Stock $2,000
To Additional Paid in capital $38,000
(Being issue of common stock is recorded)
2. Accounts Receivable Dr, $19,500
To Service revenue $19,500
(Being Service revenue is recorded)
3. Supplies Dr, $6,700
To Accounts payable $6,700
(Being additional supplies on account is recorded)
4. Treasury stock Dr, $25,200
To Cash $25,200
(1,200 × $21)
(Being purchase of treasury stock is recorded)
5. Accounts payable Dr, $18,300
To Cash $18,300
(Being accounts payable is recorded)
6. Cash Dr, $50,900
To Service revenue $50,900
(Being service provided for cash is recorded)
7. Cash Dr, $18,400
To Accounts Receivable $18,400
(Being cash is recorded)
8. Retained earnings Dr, $5,040
(18,000 - 1,200) × $0.30
To Dividend payable $5,040
(Being dividend declared is recorded)
9. Cash Dr, $13,800
(600 × $23)
To Treasury stock $12,600
To Additional paid-in-capital $1,200
(Being treasury stock is recorded)
10. Salaries expense Dr, $43,800
To Cash $43,800
(Being Cash is recorded)
