Problem 3 - Preparing Journal Entries Aug 1 Opened a business bank account with a deposit of $50,000 in exchange for issued common stock. 3 Purchased $2,000 of supplies on account to be used next month. 6 Purchased a parcel of land for $20,000. 8 Completed a consulting job and billed client $5,000. 11 Paid rent of $1,500 on office equipment for the month. 14 Paid half of the balance due on the supplies purchased on the 3rd. 15 Paid office salaries, $3,500. 17 Received $6,000 in advance from a customer for a job to be performed in September. 21 Collected fees of $4,000 for a consulting job completed today. 23 Collected $3,000 of the amount billed on August 8. 27 Paid the telephone expense, $500. 31 Paid $600 for an advertising promotion. General Journal Date Account Debit Credit Aug 1 Aug 3 Aug 6 Aug 8 Aug 11 Aug 14 Aug 15 Aug 17 Aug 21 Aug 23 Aug 27 Aug 31

Problem 3 - Preparing Journal Entries Aug 1 Opened a business bank account with a deposit of $50,000 in exchange for issued common stock. 3 Purchased $2,000 of supplies on account to be used next month. 6 Purchased a parcel of land for $20,000. 8 Completed a consulting job and billed client $5,000. 11 Paid rent of $1,500 on office equipment for the month. 14 Paid half of the balance due on the supplies purchased on the 3rd. 15 Paid office salaries, $3,500. 17 Received $6,000 in advance from a customer for a job to be performed in September. 21 Collected fees of $4,000 for a consulting job completed today. 23 Collected $3,000 of the amount billed on August 8. 27 Paid the telephone expense, $500. 31 Paid $600 for an advertising promotion. General Journal Date Account Debit Credit Aug 1 Aug 3 Aug 6 Aug 8 Aug 11 Aug 14 Aug 15 Aug 17 Aug 21 Aug 23 Aug 27 Aug 31

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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Problem 3 - Preparing Journal Entries

Aug	1	Opened a business bank account with a deposit of $50,000 in exchange for issued common stock.
	3	Purchased $2,000 of supplies on account to be used next month.
	6	Purchased a parcel of land for $20,000.
	8	Completed a consulting job and billed client $5,000.
	11	Paid rent of $1,500 on office equipment for the month.
	14	Paid half of the balance due on the supplies purchased on the 3rd.
	15	Paid office salaries, $3,500.
	17	Received $6,000 in advance from a customer for a job to be performed in September.
	21	Collected fees of $4,000 for a consulting job completed today.
	23	Collected $3,000 of the amount billed on August 8.
	27	Paid the telephone expense, $500.
	31	Paid $600 for an advertising promotion.

	General Journal
Date	Account	Debit	Credit

Aug 1


Aug 3


Aug 6


Aug 8


Aug 11


Aug 14


Aug 15


Aug 17


Aug 21


Aug 23


Aug 27


Aug 31

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