Journal: Journal is the book of original entry. Journal consists of the day-to-day financial transactions in a chronological order. The journal has two aspects; they are debit aspect and the credit aspect. Rules of debit and credit: “An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited. Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”. To journalize: The issuance of common stock, the hiring of an administrative assistance, the office furniture purchased on account, the Service performed to E.C, the cash received as commission, The payment made for the equipment purchased on account, The salaries paid to administrative assistance.

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Chapter 3, Problem 3.9E

To determine

Journal:

Journal is the book of original entry. Journal consists of the day-to-day financial transactions in a chronological order. The journal has two aspects; they are debit aspect and the credit aspect.

Rules of debit and credit:

“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.

Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.

To journalize: The issuance of common stock, the hiring of an administrative assistance, the office furniture purchased on account, the Service performed to E.C, the cash received as commission, The payment made for the equipment purchased on account, The salaries paid to administrative assistance.

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