Concept explainers
(a)
Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.
Accounting rules for journal entries:
- To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.
- To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.
To Prepare: The
(b)
To Prepare: The journal entry for sale of equipment for $31,000 on May 1, 2017.
(c)
To Prepare: The journal entry for sale of equipment for $11,000 on Jan. 1, 2017.
(d)
To Prepare: The journal entry for sale of equipment for $11,000 on Oct. 1, 2017.

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Chapter 10 Solutions
ACCOUNTING PRINCIPLES
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