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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 13EB: Marc Associates employs Janet Evanovich at its law firm. Her gross income for June is $7,500....

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REQUIREMENT: JOURNAL ENTRIES
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