Explanation Journal entry : Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically. 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 November 1 Cash 101 $60,000 Tools 131 $5,000 RM Capital 301 $65,000 (To record the receipt of capital) Table (1) General Journal Page - 2 Date Description Post Debit Credit 2019 November 2 Equipment 151 $3,500 Office supplies 121 $700 Accounts payable 202 $3,500 Cash 101 $700 (To record the purchase of Equipment and supplies on account Invoice 501; and issued Check 100 for down payment) November 10 Cash 101 $1,000 Accounts receivable 111 $2,200 Fees Income 301 $3,200 (To record the services provided for cash and on account) November 20 Machinery 141 $4,000 Accounts payable 202 $2,500 Cash 101 $1,500 (To record the purchase of Machinery on account Invoice 709; and issued Check 101 for down payment) Table (2) General ledger: General ledger is a record of all accounts of assets, liabilities, and stockholders’ equity, necessary to prepare financial statements. In the ledger all the entries are recorded in the account order , for which the transactions actually take place. 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 November 1 J1 $ 60,000 $ 60,000 November 2 J1 $ 700 $ 59,300 November 10 J2 $ 1,000 $ 60,300 November 20 J2 $ 1,500 $ 58,800 Table (3) GENERAL LEDGER ACCOUNT: Accounts receivable Account No.: 111 Date Description Post...

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Author: Haddock

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Chapter 4, Problem 4PA

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Journalize the given transaction, post them to the respective ledger accounts and identify the liabilities the company owes at the end of the month.

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Ch. 4 - The part of the journal entry to be recorded first...Ch. 4 - A general journal is like a(n): a. address book....Ch. 4 - Why are check and invoice numbers included in the...Ch. 4 - Prob. 1.4SRQ Ch. 4 - Prob. 1.5SRQ Ch. 4 - Prob. 1.6SRA Ch. 4 - Prob. 2.1SRQ Ch. 4 - Prob. 2.2SRQ Ch. 4 - What is entered in the Posting Reference column of...Ch. 4 - Prob. 2.4SRE

Ch. 4 - Prob. 2.5SRE Ch. 4 - Prob. 2.6SRA Ch. 4 - What is recorded in the Posting Reference column...Ch. 4 - Prob. 2CSR Ch. 4 - Prob. 3CSR Ch. 4 - Prob. 4CSR Ch. 4 - Prob. 5CSR Ch. 4 - Prob. 1DQ Ch. 4 - Prob. 2DQ Ch. 4 - What is a ledger?Ch. 4 - What is posting?Ch. 4 - Prob. 5DQ Ch. 4 - Prob. 6DQ Ch. 4 - What is a compound journal entry?Ch. 4 - Prob. 8DQ Ch. 4 - Prob. 9DQ Ch. 4 - Prob. 10DQ Ch. 4 - Prob. 11DQ Ch. 4 - Prob. 1E Ch. 4 - Prob. 2E Ch. 4 - Prob. 3E Ch. 4 - Compound journal entries. The following...Ch. 4 - Prob. 5E Ch. 4 - Recording a correcting entry. On August 22, 2019,...Ch. 4 - Prob. 1PA Ch. 4 - On October 1, 2019, Helen Kennedy opened an...Ch. 4 - The following journal entries were prepared by an...Ch. 4 - Prob. 4PA Ch. 4 - Prob. 1PB Ch. 4 - Prob. 2PB Ch. 4 - Prob. 3PB Ch. 4 - Prob. 4PB Ch. 4 - Prob. 1CTP Ch. 4 - Prob. 2CTP Ch. 4 - Prob. 1MF Ch. 4 - Prob. 2MF Ch. 4 - Prob. 3MF Ch. 4 - Prob. 4MF Ch. 4 - Prob. 1ED

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Journalize the given transaction, post them to the respective ledger accounts and identify the liabilities the company owes at the end of the month.

Solution Summary: The author explains the rules of debiting and crediting different accounts while they occur in business transactions.

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Journalize the given transaction, post them to the respective ledger accounts and identify the liabilities the company owes at the end of the month.

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