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Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

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Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
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Brief Exercise 2-32 Journalize Transactions

Galle Inc. entered into the following transactions during January.

  1. January, 1: Borrowed $50,000 from First Street Bank by signing a note payable.
  2. January, 4: Purchased $25,000 of equipment for cash.
  3. January, 6: Paid $500 to landlord for rent for January.
  4. January, 15: Performed services for customers on account. $10,000.
  5. January, 25: Collected $3,000 from customers for services performed in Transaction d.
  6. January, 30: Paid salaries of $2,500 for the current month.

Required:

Prepare journal entries for the transactions.

To determine

Journal Entries:

Journal entries are medium of recording business transactions. A business enterprise must record all the business transaction to evaluate net income or loss and analyze the financial performance of a company during a specified accounting period.

Journalize the transactions which occurred during the month of January.

Explanation
    AssetsLiabilitiesStockholders’ Equity
    ACash (Increase)Note Payable (Increase)
    BCash (Decrease)
    Equipment (Increase)
    C

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