Chapter 2, Problem 9SE

Re-creating journal entries from T-account postings (Learning Objectives 2 & 3) 15-20 min.

Haskins, Inc., began operations on January 1, 2018. The seven transactions recorded during January by the company accountant are shown in the following T-accounts:

	Cash		111
(1)	15,000	(2)	3,000
		(5)	250
		(6)	2,300
		(7)	1,000
Bal	8,450

	Accounts Receivable		112
(4)	4,500
Bal	4,500

	Supplies		113
(3)	600
Bal	600

	Equipment			114
(2)	3,000
Bal	3,000

	Accounts Payable		211
(5)	250	(3)	600
		Bal	350

	Common Stock		311
		(1)		15,000
		Bal		15,000

	Dividends		322
(7)	1,000
Bal	1,000

	Service Revenue		411
		(4)	4,500
		Bal	4,500

	Operating Expenses		511-524
(6)	2,300
Bal	2,300

Complete the following table. For each transaction shown, determine the accounts affected, the type of account, whether the account increases or decreases, and whether it would be recorded in the journal on the debit or credit side.

Transaction	Accounts Affected	Type	⇅	Dr. or Cr.
(1)	Cash	Asset	Increase	Dr.
	Common Stock	Stockholders’ Equity	Increase	Cr.