Question : 207. George Butler owned a tugboat and was tired of his : 1257809

 

207. George Butler owned a tugboat and was tired of his current job. He decided to open a business, Butler, Inc., that provides day tugboat tours to tourists along the Mississippi Rivernear his hometown. Prepare journal entries to record the following transactions.  

May 1

 

Butler invested $20,000 cash and his tugboat valued at $90,000 in the business.

May 2

 

Butler paid $3,000 cash for office equipment to help him keep track of business activities.

May 3

 

Butler bought boating supplies costing $2,500 on credit.

May 4

 

Butler paid the river master $500 cash for the first month’sdock rental.

May 5

 

Butler paid $1,800 cash for a six-month insurance policy.

May 10

 

Butler received $2,000 cash from clients for his first tour.

May 12

 

Butler provided a $3,500 tour on credit, the customer has agreed to pay within 10 days

May 19

 

Butler paid for the boating supplies originally purchased on May 3.

May 22

 

Butler receives payment on the account from the client entry on May 12.

May 25

 

Butler received $2,750 cash for additional tours.

May 31

 

Butler paid his crew member a salary of $1,000.

May 31

 

The company paid $2,000 cash in dividends to the owner. (sole shareholder)