E2-23 Journalizing transactions [10–20 min] Principe Technology Solutions, Inc., completed the following transactions during August 2012, its first month of operations:

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E2-23 Journalizing transactions [10–20 min] Principe Technology Solutions, Inc., completed the following transactions during August 2012, its first month of operations:

August:

• 1 Received cash of $48,000 and issued common stock. 
• 2 Purchased supplies of $500 on account. 
• 4 Paid $47,000 cash for a building.
• 6 Performed service for customers and received cash, $4,400. 
• 9  Paid $200 on accounts payable. 
• 17 Performed service for customers on account, $2,200. 
• 23 Received $1,600 cash from a customer on account. 
• 31 Paid the following expenses: salary, $1,900; rent, $700

 Requirement
1. Record the preceding transactions in the journal of Principe Technology Solutions. Include an explanation for each entry, as illustrated in the chapter. Use the following accounts: Cash, Accounts receivable, Supplies, Building, Accounts payable, Common stock, Service revenue, Salary expense, and Rent expense.