Chapter 2, Problem E2.15E

Analyzing and journalizing transactions

Learing Objective 3

As the manager of Margarita Mexican Restaurant, you must deal with a variety of business transactions. Provide an explanation for the following transactions:

a. Debit Equipment and credit Cash.
b. Debit Garcia, Withdrawals and credit Cash.
c. Debit Wages Payable and credit Cash.
d. Debit Equipment and credit Garcia, Capital.
e. Debit Cash and credit Unearned Revenue.
f. Debit Advertising Expense and credit Cash.
g. Debit Cash and credit Service Revenue.

Use the following information to answer Exercises E2−16 and E2−17.

The following transactions occurred for Lawrence Engineering:

Jul. 2	Received $14,000 contribution from Brett Lawrence, owner, in exchange for capital.
4	Paid utilities expense of $370.
5	Purchased equipment on account, $1,600.
10	Performed services for a client on account, $2,900.
12	Borrowed $7,100 cash, signing a notes payable.
19	The owner, Brett Lawrence, withdrew $200 cash from the business.
21	Purchased office supplies for $840 and paid cash.
27	Paid the liability from July 5.