Concept explainers
(a)
Journal:
Journal is the book of original entry. Journal consists of the day today financial transactions in a chronological order. The journal has two aspects; they are debit aspect and the credit aspect.
Rules of debit and credit:
“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.
Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.
To journalize: the issuance of common stock in exchange of cash.
(b)
To journalize: equipments purchased on account.
(c)
To journalize: The rent paid for June month.
(d)
To journalize: The bill sent for completing the welding work.

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Chapter 3 Solutions
FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
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