a.
Concept Introduction:
Journalizing transactions: The process of recording transactions into journals is called journalizing. A journal is a complete record of each transaction, it also shows debit and credits for each transaction. Some transactions require more than one debit or credit, this kind of transaction where a
The compound journal entry for each of the given transactions.
b.
Concept Introduction:
Journalizing transactions: The process of recording transactions into journals is called journalizing. A journal is a complete record of each transaction, it also shows debit and credits for each transaction. Some transactions require more than one debit or credit, this kind of transaction where a journal entry has more than one debit or credit is called a compound entry.
The compound journal entry.
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FINANCIAL AND MANAGERIAL ACCOUNTING
- Assuming the entity bought 300,000 worth of supplies on account. The proper journal entry to this transaction is by debiting the Supplies account and crediting what account? a.) Accounts Receivable b.) Supplies Expense c.) Cash d.) Accounts Payablearrow_forwardGroro Co. Bills a client $62,000 for services provided and agrees to accept the following 3 items as full payment $10,000 cash, equipment worth $80,000 and to assume responsibility for a $28,000 note payable related to the equipment. question: record the transaction in journal entry form. date general journal debit credit general journals are either cash,equipment revenue, supplies, accounts payable, note payable, common stock or revenuearrow_forwardGRADED: Recording transactions in t-accountsTHE SMITH COMPANYUsing the business transactions below, complete T-accounts for the Smith Company. I have provideda blank sheet of t-accounts as an attachment to this assignment. The company started business onJune 1, 2019.a. John Smith, owner, invested $120,000 cash in the company.b. The company purchased $10,000 of office equipment on credit.c. The company billed a customer $2,000 as fees for services provided.d. The company paid $1,000 cash for the monthly rent.e. The company purchased office supplies for $500 cash.f. The company paid $300 for the utilities for the month.g. The company received $15,000 cash as fees for services provided to a customer.h. The company paid the secretary’s salary for the month, $3,000.i. John Smith withdrew $6,000 cash from the company for personal use.As you work this problem, be sure to label entries with the appropriate “letter” associated with thetransaction. Also, be sure to compute the T-account balances…arrow_forward
- Activities: Prepare an Accounts Receivable Subsidiary Ledger of the following transactions. Write your answer on a separate sheet of paper. Activity 1 Prepare the Accounts Receivable Subsidiary Ledger for XYZ Company for the year ended on December 31, 2020. IV. December 1: The opening balance for Mr. James and Mr. John is P 250,000 andP 450,000. Sold goods to Mr. James on credit for P 300,000. Received payments from Mr. James, P250,000 Received payments Mr. John, P450,000 December 4: December 12: December 16: Activity 2 Prepare the Accounts Receivable Subsidiary Ledger for ABC Company for the year ended on August 31, 2019. Aug. 1: Aug. 3: Aug. 13: Aug. 20: The opening balance for Ms. Santos and Ms. Cruz is P 200,000 and P 400,000. Sold goods to M Williams on credit for P 350,000. Received payments from M Williams, P200,000 Received payments T George, 400,000 Activity 3 Prepare the Accounts Receivable Subsidiary Ledger for XXX Company for the year ended on July 31, 2020. July. 1: July…arrow_forwardA business purchases equipment by payingOR8, 000 in cash and issuing a note payable of OR12, 000. Which of the following journal entries would be recorded? Select one: O a. Equipment 8,000 Notes payable 4,000 Cash 12,000 O b. Equipment 20,000 Notes payable 12,000 Cash O c. Cash 8,000 Notes payable 4,000 Equipment 12,000 O d. Cash 8,000 Notes payable 12,000 Equipment 20,000arrow_forwardhh. Subject:- Accounting On December 31, the company purchases equipment for $10,000 and pays for the purchase in cash.Complete the necessary journal entry by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.arrow_forward
- Debit and Credit Effect on Transactions Jefferson Framers engaged in the following transactions: a. Purchased land for $65,000 cash. b. Purchased equipment for $26,400 in exchange for a 1-year, 8% note payable. c. Purchased office supplies on credit for $1,200 from Office Depot. d. Paid $20,000 principal plus $700 interest on a note payable. e. Paid an account payable in the amount of $3,550. f. Provided $61,300 of services on credit. g. Provided $12,800 of services for cash. h. Collected $26,910 of accounts receivable. 1. Paid $12,760 of wages in cash. j. Issued common stock for $45,000 cash. Required: Select the correct information for each transaction. Enter the debits before the credits. Transaction a is entered as an example. Transaction Account Increase/Decrease Amount Increase $65,000 Decrease $65,000 a. Land Cash Debit/Credit Debit Creditarrow_forwardJournalize the following business transactions in general journal form. Identify each transaction by number. 1. The company issues stock in exchange for $40,000 cash. 2. Purchased $400 of supplies on credit. 3. Purchased equipment for $8,000, paying $2,000 in cash and signed a 30-day, $6,000, note payable. 4. Real estate commissions billed to clients amount to $4,000. Paid $700 in cash for the current month's rent. 6. Paid $200 cash on account for supplies purchased in transaction 2. 7. Received a bill for $600 for advertising for the current month. 8. Paid $2,200 cash for office salaries and wages. 9. The company paid dividends of $1,500. 10. Received a check for $3,000 from a client in payment on account for commissions billed in transaction 4. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "Ne for the account titles and enter O for the amounts.) 5.arrow_forwardDirections: Post each journal entry to its corresponding ledger. Write your answers on a separate sheet of paper. 1. The owner purchased supplies worth P10,000. GENERAL JOURNAL Page 1 Date Account Titles and Explanation P.R. Debit Credit 2019 Jul- 02 Supplies 103 P 10,000 Cash 101 P 10,000 To record purchase of supplies Account Name: Account No. Date Account Titles and J.R. Debit Credit Balance Explanations Account Name: Account No. Account Titles and Explanations Date J.R. Debit Credit Balance 2. The business received P8,000 for services rendered. GENERAL JOURNAL Page 2 Date Account Titles and Explanation P.R. Debit Credit 2019 Jul- 16 Cash 101 P 8,000 Service Revenue 401 P 8,000 To record cash received for services renderedarrow_forward
- Required: Record the debit and credit in the appropriate account for each of the following trans- actions (transaction 1 is done for you): Debit Credit Cash Share Capital 1. Issued share capital for cash. 2. Purchased equipment on credit. 3. Paid for a one-year insurance policy. 4. Billed a customer for repairs completed today. 5. Paid this month's rent. 6. Collected the amount billed in transaction 4 above. 7. Collected cash for repairs completed today. 8. Paid for the equipment purchased in transaction 2 above. 9. Signed a union contract. 10. Collected cash for repairs to be made for customers next month. 11. Transferred this month's portion of prepaid insurance that was used to Insurance Expense.arrow_forwardWhat is journal entry for this ? Date Transaction 1 Jan 2021 Launched business with RO 25,000 in cash. 2nd Jan 2021 Acquired Tools & Equipment for RO 5,000. 31 Jan 2021 Opened an account with Bank Nizwa and deposited RO 10,000 in it. Procured Billing Equipment of RO 1,000 and payment made by cheque. Paid inauguration expenses worth RO 1,500. 1 Feb 2021 2nd Feb 2021 1 Mar 2021 Bought stock of furniture worth RO 10,000 on credit from Mr. Hamed. 2nd Mar 2021 Sold stock of furniture worth RO 7,000 on credit to Mr. Hillal. 31 Mar 2021 Mr. Hillal returned defective stock of furniture worth RO 2,000 to us. 1 Apr 2021 Returned defective stock of furniture worth RO 1,500 to Mr. Hamed 2nd Apr 2021 Mr. Abdullah used RO 1,000 worth of stock of furniture for his personal use. 1 May 2021 Withdrawn cash from Bank Nizwa worth RO 4,000 for office use. 2nd May 2021 Paid Salaries to workers worth RO 8,000.arrow_forwardRecord each of these transactions in Journal entries and prepare the Ledger for Cash & Cash Equivalents, Accounts Receivable and Accounts Payable: 1st Sunny Barcelona started the business by depositing $50,000 received from the sale of capital stock in the company bank account. 22nd Purchased a building for $36,000, paying $6,000 in cash and issuing a note payable for the remaining $30,000. 25th Purchased tools and equipment on account, $13,800. 27th Sold some of the tools at a price equal to their cost, $1,800, collectible within 45 days. 2nd Received $600 in partial collection of the account receivable from the sale of tools. 7th Paid $6,800 in partial payment of an account payable. 11th Received $2,200 of sales revenue in cash. 2oth Purchased radio advertising from RAC105 to be aired in March. The cost was $470, payable within 30 days. 22nd Purchased office equipment for $15,000 cash. 26th Performed repair services and billed clients $2,000. The entire amount will…arrow_forward
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