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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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Problem 2-593 Journalizing Transactions

Monilast Chemicals engaged in the following transactions during December 2019:

Dec 2 Paid rent on office furniture, $1,200.

3 Borrowed $25,030 on a 9-month, 3% note.

7 Provided services on credit. $42,600.

10 Purchased supplies on credit, $2,850.

13 Collected accounts receivable, $20,150.

19 Issued common stock, $50000.

22 Paid employee wages for December. $13,825.

23 Paid accounts payable, $1,280.

25 Provided services for cash, $13,500.

30 Paid utility bills for December, $1,975.

Required:

Prepare a journal entry for each transaction.

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
    Date AssetsLiabilitiesStockholders’ Equity
    Dec.
    2Decrease (Cash)Decrease (Rent Expense)
    3Increase (Cash)Increase (Notes Payable)
    7Increase (Accounts Receivable)Increase (Service Revenue)
    10Increase (Supplies)Increase (Accounts Payable)
    13Increase (Cash)

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