On July 1, 2019, Tim Stein established his own accounting practice. Selected transactions for the first few days of July follow. DATE TRANSACTIONS July 1 Purchased a one-year insurance policy and issued Check 102 for $1,620 to pay the entire premium. 3 Purchased office furniture for $16,900 from Furniture Warehouse; issued Check 103 for $8,400 and agreed to pay the balance in 60 days. The equipment has an estimated useful life of five years and a $1,600 salvage value. The office furniture will be depreciated using the straight-line method. Required: Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and unearned income as a liability for the year 2019. 1) Record the payment for insurance. 2) Record the purchase of furniture. Date General Journal Debit Credit Jul 01, 2019 July 03, 2019
On July 1, 2019, Tim Stein established his own accounting practice. Selected transactions for the first few days of July follow. DATE TRANSACTIONS July 1 Purchased a one-year insurance policy and issued Check 102 for $1,620 to pay the entire premium. 3 Purchased office furniture for $16,900 from Furniture Warehouse; issued Check 103 for $8,400 and agreed to pay the balance in 60 days. The equipment has an estimated useful life of five years and a $1,600 salvage value. The office furniture will be depreciated using the straight-line method. Required: Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and unearned income as a liability for the year 2019. 1) Record the payment for insurance. 2) Record the purchase of furniture. Date General Journal Debit Credit Jul 01, 2019 July 03, 2019
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2019, Tim Stein established his own accounting practice. Selected transactions for the first few days of July follow.
| DATE | TRANSACTIONS | |
| July | 1 | Purchased a one-year insurance policy and issued Check 102 for $1,620 to pay the entire premium. |
| 3 | Purchased office furniture for $16,900 from Furniture Warehouse; issued Check 103 for $8,400 and agreed to pay the balance in 60 days. The equipment has an estimated useful life of five years and a $1,600 salvage value. The office furniture will be |
|
Required:
- Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and unearned income as a liability for the year 2019.
1) Record the payment for insurance.
2) Record the purchase of furniture.
|
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