EXAMPLE 2 During the month of January, Mr. Alan Bagon, lawyer, 1.Invested $5,000 to open his law practice 2.Bought supplies (stationery, forms, pencils, etc.) for cash, $300 3.Bought office equipment from Altway Furniture Company on account, $2,500 4. Received $2,000 in fees earned during the month 5. Paid office rent for January, $500 6. Paid salary for part-time help, $200 7. Paid $1,000 to Altway Furniture Company on account 8. After taking an inventory at the end of the month, found that he had used $200 worth of sumn 9. Withdrew $300 for personal use These transactions might be analyzed and recorded as follows: Transaction (1), Mr Bagon invested $5,000 to open his law practice. There are two accounts that are die The asset Cash is increased, and the capital of the firm is increased by the same amount

EXAMPLE 2 During the month of January, Mr. Alan Bagon, lawyer, 1.Invested $5,000 to open his law practice 2.Bought supplies (stationery, forms, pencils, etc.) for cash, $300 3.Bought office equipment from Altway Furniture Company on account, $2,500 4. Received $2,000 in fees earned during the month 5. Paid office rent for January, $500 6. Paid salary for part-time help, $200 7. Paid $1,000 to Altway Furniture Company on account 8. After taking an inventory at the end of the month, found that he had used $200 worth of sumn 9. Withdrew $300 for personal use These transactions might be analyzed and recorded as follows: Transaction (1), Mr Bagon invested $5,000 to open his law practice. There are two accounts that are die The asset Cash is increased, and the capital of the firm is increased by the same amount

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 79BPSB

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Harris Welding Company had the following transactions for June. June 1 Tyler Harris invested $9550 cash in a small welding business June 2 Bought used welding equipment on account for $3050 June 5 Hired an employee to start work on July 15. Agreed on a salary of $3390 per month June 17 Billed P. White $2230 for welding work done. June 27 Received $1220 cash from P.White for work billed on June 17. Journalize the transactions
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REQUIREMENT: JOURNAL ENTRIES