Concept explainers
1.
Journalize the given transaction.
1.

Explanation of Solution
Debit: A debit, is an accounting term that refers to the left side of an account. The term debit is be denoted by (Dr). The recording amount on the left side of the account is known as debiting.
Credit: A credit, is an accounting term that refers to the right side of an account. The term credit is denoted as (Cr). The recording amount on the right side of the account is known as crediting.
Rules of Debit and Credit:
Following rules are followed for debiting and crediting different accounts while they occur in business transactions:
- Debit, all the increase in the assets, the expenses and the dividends, all the decrease in liabilities, revenues and the stockholders’ equities.
- Credit, all the increase in the liabilities, the revenues, and the stockholders’ equities, and all decreases in the assets, and the expenses.
Pass the journal entries for the given transactions:
General Journal | Page - 1 | |||
Date | Description | Post | Debit | Credit |
2019 | ||||
June 1 | Cash | 101 | $20,000 | |
ILCapital | 301 | $20,000 | ||
(To record the receipt of capital) | ||||
June 2 | Rent expense | 514 | $2,000 | |
Cash | 101 | $2,000 | ||
(To record the payment of rent, Check 1001) |
Table (1)
General Journal | Page - 2 | |||
Date | Description | Post | Debit | Credit |
2019 | ||||
June 5 | Office Equipment | 141 | $9,500 | |
Accounts payable | 202 | $9,500 | ||
(To record the purchase of office equipment on account Invoice 5312) | ||||
June 6 | Photographic Equipment | 151 | $2,100 | |
Cash | 101 | $2,100 | ||
(To record the purchase of photographic equipment for cash, Check 1002) | ||||
June 7 | Supplies | 121 | $550 | |
Cash | 101 | $550 | ||
(To record the purchase of supplies for cash, Check 1003) | ||||
June 10 | Office Cleaning Expense | 511 | $800 | |
Cash | 101 | $800 | ||
(To record the payment of office cleaning expense, Check 1004) | ||||
June 12 | Cash | 101 | $2,600 | |
111 | $2,600 | |||
Fees Income | 401 | $5,200 | ||
(To record the services provided for cash and on account) | ||||
June 15 | Cash | 101 | $1,800 | |
Supplies | 121 | $1,800 | ||
(To record the return of damaged supplies for cash refund) | ||||
June 18 | Office Equipment | 141 | $2,250 | |
Cash | 101 | $500 | ||
Accounts payable | 202 | $1,750 | ||
(To record the purchase of Equipment on account Invoice 304; and issued Check 1005 for down payment) |
Table (2)
General Journal | Page - 3 | |||
Date | Description | Post | Debit | Credit |
2019 | ||||
June 20 | Accounts payable | 202 | $2,500 | |
Cash | 101 | $2,500 | ||
(To record the payment for office supplies, Invoice 5312 by Check 1006) | ||||
June 26 | Accounts receivable | 111 | $2,500 | |
Fees income | 401 | $2,500 | ||
(To record the service provided on account) | ||||
June 27 | Telephone expense | 520 | $632 | |
Cash | 101 | $632 | ||
(To record the payment of telephone bill, Check 1007) | ||||
June 30 | Cash | 101 | $2,300 | |
Accounts receivable | 111 | $2,300 | ||
(To record the receipt of fees) | ||||
Utilities expense | 523 | $750 | ||
Cash | 101 | $750 | ||
(To record the payment of utility bill, Check 1008) | ||||
Salaries expense | 517 | $6,550 | ||
Cash | 101 | $6,550 | ||
(To record the payment of salaries, Checks 1009-1011) |
Table (3)
2.
2.

Explanation of Solution
General ledger:
General ledger is a record of all accounts of assets, liabilities, and
Post the journal entries in the General Ledger:
GENERAL LEDGER | ||||||
ACCOUNT: Cash | Account No.: 101 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 1 | J1 | $ 20,000 | $ 20,000 | |||
June 2 | J1 | $ 2,000 | $ 18,000 | |||
June 6 | J2 | $ 2,100 | $ 15,900 | |||
June 7 | J2 | $ 550 | $ 15,350 | |||
June 10 | J2 | $ 800 | $ 14,550 | |||
June 12 | J2 | $ 2,600 | $ 17,150 | |||
June 15 | J2 | $ 180 | $ 17,330 | |||
June 18 | J2 | $ 500 | $ 16,830 | |||
June 20 | J2 | $ 2,500 | $ 14,330 | |||
June 27 | J3 | $ 632 | $ 13,698 | |||
June 30 | J3 | $ 2,300 | $ 15,998 | |||
June 30 | J3 | $ 750 | $ 15,248 | |||
June 30 | J3 | $ 6,550 | $ 8,698 | |||
ACCOUNT: Accounts receivable | Account No.: 111 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 12 | J1 | $ 2,600 | $ 2,600 | |||
June 26 | J3 | $ 2,500 | $ 5,100 | |||
June 30 | J3 | $ 2,300 | $ 2,800 |
Table (4)
GENERAL LEDGER | ||||||
ACCOUNT: Supplies | Account No.: 121 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 7 | J2 | $ 550 | $ 550 | |||
June 15 | J2 | $ 180 | $ 370 | |||
ACCOUNT: Office Equipment | Account No.: 141 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 5 | J2 | $ 9,500 | $ 9,500 | |||
June 18 | J2 | $ 2,250 | $ 11,750 | |||
ACCOUNT: Photographic Equipment | Account No.: 151 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 6 | J2 | $ 2,100 | $ 2,100 | |||
ACCOUNT: Accounts payable | Account No.: 202 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 5 | J2 | $ 9,500 | $ 9,500 | |||
June 18 | J2 | $ 1,750 | $ 11,250 | |||
June 20 | J3 | $ 2,500 | $ 8,750 | |||
ACCOUNT: IL Capital | Account No.: 301 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 1 | J1 | $ 20,000 | $ 20,000 | |||
ACCOUNT: IL Drawings | Account No.: 302 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 |
Table (5)
GENERAL LEDGER | ||||||
ACCOUNT: Fees Income | Account No.: 401 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 12 | J2 | $ 5,200 | $ 5,200 | |||
June 26 | J3 | $ 2,500 | $ 7,700 | |||
ACCOUNT: Office Cleaning Expense | Account No.: 511 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 10 | J2 | $ 8,000 | $ 8,000 | |||
ACCOUNT: Rent Expense | Account No.: 514 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 2 | J1 | $ 2,000 | $ 2,000 | |||
ACCOUNT: Salaries Expense | Account No.: 517 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 30 | J3 | $ 6,550 | $ 6,550 | |||
ACCOUNT: Telephone Expense | Account No.: 520 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 27 | J3 | $ 632 | $ 632 | |||
ACCOUNT: Utilities Expense | Account No.: 523 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 30 | J3 | $ 750 | $ 750 |
Table (6)
The cash balance after the transaction on June 27th was $13,698.
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