Answer:
Aug-01
Dr Cash $ 10,090.00
Cr Common stock $ 10,090.00
Aug-04
Dr Prepaid insurance $ 1,270.00
Cr Cash $ 1,270.00
Aug-16
Dr Cash $ 700.00
Cr Service revenue $ 700.00
Aug-27
Dr Salaries expense $ 490.00
Cr Cash $ 490.00
Explanation:
Preparation of the journal entries
Aug-01
Dr Cash $ 10,090.00
Cr Common stock $ 10,090.00
(To record issue of common stock)
Aug-04
Dr Prepaid insurance $ 1,270.00
Cr Cash $ 1,270.00
(To record payment for insurance)
Aug-16
Dr Cash $ 700.00
Cr Service revenue $ 700.00
(To record service revenue)
Aug-27
Dr Salaries expense $ 490.00
Cr Cash $ 490.00
(To record payment of salaries)
