George Butler Owned a Tugboat and Was Tired of His

Essay

George Butler owned a tugboat and was tired of his current job. He decided to open a business that provides day tugboat tours to tourists along the Mississippi River near 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 in exchange for common stock.
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's dock 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 that he completed that day.
May 31 Butler paid his crew member a salary of $1,000.
May 31 The company paid Butler, its sole stockholder, $2,000 for personal use.