Journal: Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system. Companies may use various kinds of journals, but every company has most common form of journal that is, the general journal . Journal makes three significant contributions to the recording process. They are as follows: Complete effect of a business transaction disclosed in one place. Transactions are recorded in chronological order. It helps to prevent or locate errors. Rules of Debit and Credit Following rules are followed for debiting and crediting different accounts while they occur in business transactions: Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities. Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses. To indicate: basic type of account, specific account debited and credited, whether it is increased or decreased and normal balance of the specific account for each transaction.

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Answer 1

Question

Chapter 3, Problem 3.7E

(a)

To determine

Journal:

Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system.

Companies may use various kinds of journals, but every company has most common form of journal that is, the general journal. Journal makes three significant contributions to the recording process. They are as follows:

Complete effect of a business transaction disclosed in one place.

Transactions are recorded in chronological order.

It helps to prevent or locate errors.

Rules of Debit and Credit

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To indicate: basic type of account, specific account debited and credited, whether it is increased or decreased and normal balance of the specific account for each transaction.

(b)

To determine

To journalize: issuance of common stock, equipment (car) purchased in cash, Supplies purchased on account, Service performed on account to customers, paid cash for advertisement, cash received from customer, cash paid to creditors, dividend paid to stockholders.

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Students have asked these similar questions

Variable:11, fixed :4

Cobalt Distributors processes customer payments at its central office in Denver. The company has an average accounts receivable (A/R) balance of $4.2 million, which is financed through a line of credit at an annual interest rate of 11.8%. Management is evaluating a new lockbox system that is expected to reduce A/R by 19%. The annual cost of operating the lockbox system is $18,500. What is the estimated net annual savings from implementing the lockbox system?

Adam Traders is preparing its cash budget for the month of June. The company estimated credit sales for June at $180,000. Actual credit sales for May were $140,000. Estimated collections in June for credit sales in June are 25%. Estimated collections in June for credit sales in May are 60%. Estimated collections in June for credit sales prior to May are $10,000. Estimated write-offs in June for uncollectible credit sales are $6,000. The estimated provision for bad debts in June for credit sales in June is $5,000. What are the estimated cash receipts from accounts receivable collections in June?

Answer 2

Question

Chapter 3, Problem 3.7E

(a)

To determine

Journal:

Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system.

Companies may use various kinds of journals, but every company has most common form of journal that is, the general journal. Journal makes three significant contributions to the recording process. They are as follows:

Complete effect of a business transaction disclosed in one place.

Transactions are recorded in chronological order.

It helps to prevent or locate errors.

Rules of Debit and Credit

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To indicate: basic type of account, specific account debited and credited, whether it is increased or decreased and normal balance of the specific account for each transaction.

(b)

To determine

To journalize: issuance of common stock, equipment (car) purchased in cash, Supplies purchased on account, Service performed on account to customers, paid cash for advertisement, cash received from customer, cash paid to creditors, dividend paid to stockholders.

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Answer 3

Question

Chapter 3, Problem 3.7E

(a)

To determine

Journal:

Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system.

Companies may use various kinds of journals, but every company has most common form of journal that is, the general journal. Journal makes three significant contributions to the recording process. They are as follows:

Complete effect of a business transaction disclosed in one place.

Transactions are recorded in chronological order.

It helps to prevent or locate errors.

Rules of Debit and Credit

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To indicate: basic type of account, specific account debited and credited, whether it is increased or decreased and normal balance of the specific account for each transaction.

(b)

To determine

To journalize: issuance of common stock, equipment (car) purchased in cash, Supplies purchased on account, Service performed on account to customers, paid cash for advertisement, cash received from customer, cash paid to creditors, dividend paid to stockholders.

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Answer 4

Question

Chapter 3, Problem 3.7E

(a)

To determine

Journal:

Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system.

Companies may use various kinds of journals, but every company has most common form of journal that is, the general journal. Journal makes three significant contributions to the recording process. They are as follows:

Complete effect of a business transaction disclosed in one place.

Transactions are recorded in chronological order.

It helps to prevent or locate errors.

Rules of Debit and Credit

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To indicate: basic type of account, specific account debited and credited, whether it is increased or decreased and normal balance of the specific account for each transaction.

(b)

To determine

To journalize: issuance of common stock, equipment (car) purchased in cash, Supplies purchased on account, Service performed on account to customers, paid cash for advertisement, cash received from customer, cash paid to creditors, dividend paid to stockholders.

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Answer 5

Chapter 3, Problem 3.7E

(a)

To determine

Journal:

Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system.

Companies may use various kinds of journals, but every company has most common form of journal that is, the general journal. Journal makes three significant contributions to the recording process. They are as follows:

Complete effect of a business transaction disclosed in one place.

Transactions are recorded in chronological order.

It helps to prevent or locate errors.

Rules of Debit and Credit

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To indicate: basic type of account, specific account debited and credited, whether it is increased or decreased and normal balance of the specific account for each transaction.

(b)

To determine

To journalize: issuance of common stock, equipment (car) purchased in cash, Supplies purchased on account, Service performed on account to customers, paid cash for advertisement, cash received from customer, cash paid to creditors, dividend paid to stockholders.

Answer 6

Chapter 3, Problem 3.7E

(a)

To determine

Journal:

Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system.

Companies may use various kinds of journals, but every company has most common form of journal that is, the general journal. Journal makes three significant contributions to the recording process. They are as follows:

Complete effect of a business transaction disclosed in one place.

Transactions are recorded in chronological order.

It helps to prevent or locate errors.

Rules of Debit and Credit

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To indicate: basic type of account, specific account debited and credited, whether it is increased or decreased and normal balance of the specific account for each transaction.

Answer 7

Chapter 3, Problem 3.7E

(a)

To determine

Journal:

Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system.

Companies may use various kinds of journals, but every company has most common form of journal that is, the general journal. Journal makes three significant contributions to the recording process. They are as follows:

Complete effect of a business transaction disclosed in one place.

Transactions are recorded in chronological order.

It helps to prevent or locate errors.

Rules of Debit and Credit

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To indicate: basic type of account, specific account debited and credited, whether it is increased or decreased and normal balance of the specific account for each transaction.

Answer 8

(b)

To determine

To journalize: issuance of common stock, equipment (car) purchased in cash, Supplies purchased on account, Service performed on account to customers, paid cash for advertisement, cash received from customer, cash paid to creditors, dividend paid to stockholders.

Answer 9

(b)

To determine

To journalize: issuance of common stock, equipment (car) purchased in cash, Supplies purchased on account, Service performed on account to customers, paid cash for advertisement, cash received from customer, cash paid to creditors, dividend paid to stockholders.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 3 - Prob. 1Q Ch. 3 - Can a business enter into a transaction that...Ch. 3 - Are the followingevents recorded in the accounting...Ch. 3 - Prob. 4Q Ch. 3 - Prob. 5Q Ch. 3 - Prob. 6Q Ch. 3 - Prob. 7Q Ch. 3 - Misty Reno, a beginning accounting student,...Ch. 3 - Prob. 9Q Ch. 3 - What is the normal balance for each of these...

Solution Summary: The author explains journaling as the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to adhere to the double-entry system.

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To journalize: issuance of common stock, equipment (car) purchased in cash, Supplies purchased on account, Service performed on account to customers, paid cash for advertisement, cash received from customer, cash paid to creditors, dividend paid to stockholders.

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