Journal123789101112131415161718DATEDESCRIPTIONJOURNALPOST. REF.DEBITCREDITACCOUNTING EQUATIONASSETSPAGE 1LIABILITIESEQUITY On January 1, 20Y5, Fahad Ali established Mountain Top Realty, which completed the following transactions during the month:Jan.1 Fahad Ali transferred cash from a personal bank account to an account to be used for the business,$31,000.Paid rent on office and equipment for the month, $3,050.Purchased supplies on account, $2,250.Paid creditor on account, $850.Earned fees, receiving cash, $14,660.Paid automobile expenses (including rental charge) for month, $1,540, and miscellaneous expenses,$670.7Paid office salaries, $2,600.8 Determined that the cost of supplies used was $1,050.9Withdrew cash for personal use, $2,200.23456

Journal Entry A journal entry is a record of a business transaction in an organization's accounting system. Journal entries are the foundation of the double-entry accounting method, which has been used to keep financial records for centuries. They allow a company to track what its resources have been used for and where those resources came from.Journalizing the above transactions Date Description Debit Credit Jan 1 Cash $31,000 Capital Contributed $31,000 (To record the contributed capital) Jan 2 Rent Expenses $3050 Cash $3050 (To record rent expenses) Jan 3 Supplies $2250 Accounts Payable $2250 (To record supplies) Jan 4 Accounts Payable $850 Cash $850 (To record accounts payable) Jan 5 Cash $14,660 Fees Revenue $14,660 (To record the revenue) Jan 6 Automobile Expenses $1540 Miscellaneous Expenses $670 Cash $2210 (To record the automobile and misc. expenses) Jan 7 Salaries Expenses $2600 Cash $2600 (To record the salaries expenses) Jan 8 Supplies Expenses $1050 Supplies $1050 ( To record the supplies expenses) Jan 9 Withdrawals $2200 Cash $2200 (To record the withdrawals) * No further calculation is needed. All amounts are already given in the above question.

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Accounting

On January 1, 20Y5, Fahad Ali established Mountain Top Realty, which completed the following transactions during the month: Jan. 1 Fahad Ali transferred cash from a personal bank account to an account to be used for the business, $31,000. 2 3 4 5 6 Paid rent on office and equipment for the month, $3,050. Purchased supplies on account, $2,250. Paid creditor on account, $850. Earned fees, receiving cash, $14,660. Paid automobile expenses (including rental charge) for month, $1,540, and miscellaneous expenses, $670. 7 Paid office salaries, $2,600. 8 Determined that the cost of supplies used was $1,050. 9 Withdrew cash for personal use, $2,200.

On January 1, 20Y5, Fahad Ali established Mountain Top Realty, which completed the following transactions during the month: Jan. 1 Fahad Ali transferred cash from a personal bank account to an account to be used for the business, $31,000. 2 3 4 5 6 Paid rent on office and equipment for the month, $3,050. Purchased supplies on account, $2,250. Paid creditor on account, $850. Earned fees, receiving cash, $14,660. Paid automobile expenses (including rental charge) for month, $1,540, and miscellaneous expenses, $670. 7 Paid office salaries, $2,600. 8 Determined that the cost of supplies used was $1,050. 9 Withdrew cash for personal use, $2,200.

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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