Chapter 15, Problem 7QS

To determine

Journal entry:

Journal is the primary record of business transactions in chronological (date wise) order. Journal entry contains two effects, one is debit and the other is credit, under the double-entry book keeping system.

Procedure for debiting and crediting an account:

• Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.

• Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.

All transactions affect the accounting equation that is displayed below. The accounting equation should always remain in balance at the time of recording a business transaction:

$\boxed{\text{Asset = Liabilities + Stockholders' equity}}$

To prepare: The journal entry to record factory overhead to job.