Journal Entries for Peter's Auto Supply Corporation: Accounts

1. Journal Entries - Peter's Auto Supply Corporation Journal Entries Accounts Payable (To record Inventory Purchased on account) Date Accounts Title Debit Credit Jul 1 Cash $100,000 Common Stock $100,000 (To record Issuance of Common stock) Jul 1 Prepaid Rent $4,000 Cash $4,000 (To record Rent expense incurred) Jul 2 Prepaid Insurance $2,400 Cash $2,400 (To record Insurance paid for 1 Year) Jul 5 Inventory $35,000 (To record sales revenue earned on account) Jul 6 Cash $36,500 Notes Payable $36,500 (To record amount borrowed from bank) Jul 8 Accounts Receivable $17,000 Sales Revenue $17,000 Jul 8 Cost of Goods Sold $7,000 Inventory $7,000 (To record cost of Goods sold incurred} Jul 15 Salaries Expense $6,000 Cash $6,000 (To record Salaries Expense incurred) Jul 18 Cash $15,000 Sales Revenue $15,000 (To record sales revenue earned on account)