Chapter 2, Problem 7E

To determine

Journal Entries:

Journal entries are the basic entries recoded as per the transactions being entered into by the business in its day to day operations in a chronological order.

Accounting rules regarding journal entries:

• Balance increases when: assets, losses and expenses are debited and liabilities, gains and incomes get credited.
• Balance decreases when: assets, losses and expenses get credited and liabilities, gains and incomes are debited.

To prepare: Journal entry.