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Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions. Then: A) Post to T accounts and prepare a trial balance. B) Compute the ending owner's capital 1. The owner, Mai Li, invests $40,000 in cash in starting a real estate office operating as a sole proprietorship. 2. Purchased $500 of supplies on credit. 3. Purchased equipment for $9,000, paying $4,000 in cash and signed a 30-day, $5,000, note payable. 4. Real estate commissions billed to clients amount to $4,000. 5. Paid $800 in cash for the current month's rent. 6. Paid $200 cash on account for supplies purchased in transaction 2. 7. Received a bill for $600 for advertising for the current month. 8. Paid $2,500 cash for office salaries and wages. 9. Li withdrew $1,800 from the business for living expenses. 10. Received a check for $2,500 from a client in payment on account for commissions billed in transaction 4.

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions. Then: A) Post to T accounts and prepare a trial balance. B) Compute the ending owner's capital 1. The owner, Mai Li, invests $40,000 in cash in starting a real estate office operating as a sole proprietorship. 2. Purchased $500 of supplies on credit. 3. Purchased equipment for $9,000, paying $4,000 in cash and signed a 30-day, $5,000, note payable. 4. Real estate commissions billed to clients amount to $4,000. 5. Paid $800 in cash for the current month's rent. 6. Paid $200 cash on account for supplies purchased in transaction 2. 7. Received a bill for $600 for advertising for the current month. 8. Paid $2,500 cash for office salaries and wages. 9. Li withdrew $1,800 from the business for living expenses. 10. Received a check for $2,500 from a client in payment on account for commissions billed in transaction 4.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question based on, "Mai Li invest 40,000 in cash".

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**Problem #1** Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions. Then: **A)** Post to T accounts and prepare a trial balance. **B)** Compute the ending owner's capital. 1. The owner, Mai Li, invests $40,000 in cash in starting a real estate office operating as a sole proprietorship. 2. Purchased $500 of supplies on credit. 3. Purchased equipment for $9,000, paying $4,000 in cash and signed a 30-day, $5,000 note payable. 4. Real estate commissions billed to clients amount to $4,000. 5. Paid $800 in cash for the current month’s rent. 6. Paid $200 cash on account for supplies purchased in transaction 2. 7. Received a bill for $600 for advertising for the current month. 8. Paid $2,500 cash for office salaries and wages. 9. Li withdrew $1,800 from the business for living expenses. 10. Received a check for $2,500 from a client in payment on account for commissions billed in transaction 4.
Transcribed Image Text:**Problem #1** Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions. Then: **A)** Post to T accounts and prepare a trial balance. **B)** Compute the ending owner's capital. 1. The owner, Mai Li, invests $40,000 in cash in starting a real estate office operating as a sole proprietorship. 2. Purchased $500 of supplies on credit. 3. Purchased equipment for $9,000, paying $4,000 in cash and signed a 30-day, $5,000 note payable. 4. Real estate commissions billed to clients amount to $4,000. 5. Paid $800 in cash for the current month’s rent. 6. Paid $200 cash on account for supplies purchased in transaction 2. 7. Received a bill for $600 for advertising for the current month. 8. Paid $2,500 cash for office salaries and wages. 9. Li withdrew $1,800 from the business for living expenses. 10. Received a check for $2,500 from a client in payment on account for commissions billed in transaction 4.
**Journal Entries** 1. **Cash** - Debit: $40,000 - Credit: Owner's Capital $40,000 2. **Supplies** - Debit: $500 - Credit: Accounts Payable $500 3. **Equipment** - Debit: $9,000 - Credit: Cash $4,000 - Credit: Notes Payable $5,000 4. **Accounts Receivable** - Debit: $4,000 - Credit: Service Revenue $4,000 5. **Rent Expense** - Debit: $800 - Credit: Cash $800 6. **Accounts Payable** - Debit: $200 - Credit: Cash $200 7. **Advertising Expense** - Debit: $600 - Credit: Accounts Payable $600 8. **Salaries and Wages Expense** - Debit: $2,500 - Credit: Cash $2,500
Transcribed Image Text:**Journal Entries** 1. **Cash** - Debit: $40,000 - Credit: Owner's Capital $40,000 2. **Supplies** - Debit: $500 - Credit: Accounts Payable $500 3. **Equipment** - Debit: $9,000 - Credit: Cash $4,000 - Credit: Notes Payable $5,000 4. **Accounts Receivable** - Debit: $4,000 - Credit: Service Revenue $4,000 5. **Rent Expense** - Debit: $800 - Credit: Cash $800 6. **Accounts Payable** - Debit: $200 - Credit: Cash $200 7. **Advertising Expense** - Debit: $600 - Credit: Accounts Payable $600 8. **Salaries and Wages Expense** - Debit: $2,500 - Credit: Cash $2,500
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