The same process occurs for the rest of the entries in the ledger and their balances. Paid $1,500 rent. Accounting Principles: A Business Perspective. Transaction 7: On January 17, 2019, receives $2,800 cash from a customer for services rendered. 2 Paid office rent for the month 1,100. During the first month of operations of her business, Tamarisk, Inc., the following events and transactions occurred.May 1 Stockholders invested $22,000 cash in exchange for common stock.2 Hired a secretary-receptionist at a salary of $1,100 per month.3 Purchased $1,600 of supplies on account from Vincent Supply Company.7 Paid office rent of $770 April 1 Invested $20,000 cash in her business. The purpose preparing the journal entry to enter the required transaction into debit, A: Building purchased will increase the balance of building by $ 182000 therefore, it will be, A: The term capital structure refers to the structure of debt and equity financing in the company. Pita paid utilities of P750 in cash.Cash Utilities Expense, Prepare the journal entries for all the transactions (including accruals) We all laughed at the joke about_ honest man, even thou Metro Courier, Inc., was organized as a corporation on January 1, the company issued shares (10,000 shares at $3 each) of common stock for $30,000 cash to Ron Chaney, his wife, and their son. Invested $20,000 cash in her business. Invested $20,000 cash in her business .m, journalize, A: Journal entries are used to record the transactions of the business and entries are posted into, A: SOLUTION- Ms. Ann had major repairs in her residence amounting to P550,000 which was paid by the business. Withdrew, A: A partnership seems to be a structure of two or more individuals who engage to conduct a legitimate, A: This s a partnership accounting question. Julia Dumars is a licensed CPA. You notice there is already a credit in Accounts Payable, and the new record is placed directly across from the January 5 record. Cash is an asset that is increasing, and it does so on the debit side. More expenses lead to a decrease in net income (earnings). then you must include on every physical page the following attribution: If you are redistributing all or part of this book in a digital format, You will notice that the transactions from January 3, January 9, and January 12 are listed already in this T-account. Is this treatment appropriate? 1 Some of the listed transactions have been ones we have seen throughout this chapter. The next transaction figure of $300 is added on the credit side. Cash is an asset that increases on the debit side. You earned $1,200. 5-Paid. 3. Metro Corporation paid a total of $900 for office salaries. and you must attribute OpenStax. 2.20.). This will increase Salaries Expense, affecting equity. 3 Purchased dental supplies on This problem has been solved! balance. In the journal entry, Accounts Receivable has a debit of $5,500. $20,000 1 Hired a secretary-receptionist at a salary of $700 per week, payable monthly. The corporation prepaid the rent for next two months making anadvanced payment of $1,800 cash. Our mission is to improve educational access and learning for everyone. Note: This does not mean revenue and expenses are equity accounts! a; a, 10). Hired a secretary-receptionist at a salary of $700 per week, Post the journal entries to the ledger Allocate any gains or losses to the partners. Revenue Expenses equals net income. You can ask a new question or browse more Accounting questions. Transaction 6: On January 14, 2019, distributed $100 cash in dividends to stockholders. In the journal entry, Dividends has a debit balance of $100. In a sole-proprietorship, equity is actually Owners Equity. You were the customer in this case. To further illustrate the analysis of transactions and their effects on the basic accounting equation, we will analyze the activities of Metro Courier, Inc., a fictitious corporation. Investment Calculator: See How Your Money Can Grow A journal entry is the act of recording or keeping track of any financial or, A: Journal: You have mowed lawns and earned more revenue. First step in, A: Important Note: As per Bartleby policy if there are multiple subpart of a question then only first 3, A: Accounting equation is written as follows: Record sale of assets and any resulting gains or losses. December 8, 2015. https://www.prnewswire.com/news-releases/2015-gift-card-sales-to-reach-new-peak-of-130-billion-300189615.html, Sara Haralson. Recording of a business transactions in a chronological order. You are now paying down some of the money you owe on that account. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo Gift cards have become an important topic for managers of any company. Answered: Invested $20,000 cash in her business | bartleby Cash was received, thus increasing the Cash account. Lets consider the general ledger for Cash.

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