BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

Montoya Tutoring Service completed the following transactions. Journalize the transactions in general journal form, including brief explanations.

images

To determine

Prepare journal entries for the given transactions.

Explanation

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

  • ■ Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.
  • ■ Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

Prepare journal entries for the given transactions.

Transaction on March 1:

DateAccount Titles and ExplanationsPost. Ref.Debit ($)Credit ($)
March1Equipment 5,798 
   Cash  3,798
   Accounts Payable  2,000
  (Record purchase of equipment)   

Table (1)

Description:

  • ■ Equipment is an asset account. Since equipment is bought, asset account increased, and an increase in asset is debited.
  • ■ Cash is an asset account. Since cash is paid, asset account decreased, and a decrease in asset is credited.
  • ■ Accounts Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Transaction on March 10:

DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
March10Wages Expense 1,536 
   Cash  1,536
  (Record payment of wages expense)   

Table (2)

Description:

  • ■ Wages Expense is an expense account. An increase in expense reduces the equity value, and a decrease in equity is debited.
  • ■ Cash is an asset account. Since cash is paid, asset account decreased, and a decrease in asset is credited.

Transaction on March 15:

DateAccount Titles and ExplanationPost Ref...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Explain the four types of corporate cultures.

Foundations of Business (MindTap Course List)

For a stock to be in equilibrium, what two conditions must hold?

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)