Great Gardens, Inc - Journal Entries

4) Great Gardens, Inc., had the following transactions during its first month of operations:

May 1 Great Gardens received $20,000 cash and issued common stock to the stockholders.

May 1 Paid the May rent, $1,000.

May 3 Purchased equipment on account for $6,000.

May 5 Purchased gardening supplies for $2,000 on account.

May 8 Performed services for a client and received cash of $1,800.

May 12 Performed services for a client and billed the customer $12,200. The customer promised to pay within 10 days.

May 15 Paid for the equipment purchased May 3 on account.

May 22 Received payment from a customer on account, $12,200.

May 28 Borrowed $20,000 from First National Bank for business use.

May 30 Paid the employee salaries of $3,000 for the month.

May 31 Paid the utility bill of $800.

Required: Record the transactions of the business in a journal. Include an explanation for each entry. (22 points)