![COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<](https://www.bartleby.com/isbn_cover_images/9781260255157/9781260255157_largeCoverImage.gif)
Concept explainers
Journalize the given transaction, post them to the respective ledger accounts and identify the activities for account 202 for the month.
![Check Mark](/static/check-mark.png)
Explanation of Solution
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 | ||||
December 3 | Cash | 101 | $25,000 | |
CW Capital | 301 | $25,000 | ||
(To record the receipt of capital) |
Table (1)
General Journal | Page - 2 | |||
Date | Description | Post | Debit | Credit |
2019 | ||||
December 4 | Computer | 131 | $25,000 | |
Cash | 101 | $25,000 | ||
(To record the purchase of computer on cash) | ||||
December 5 | Furnitures and fixtures | 151 | $7,500 | |
Accounts payable | 202 | $7,500 | ||
(To record the purchase of furniture and fixtures on account) | ||||
December 6 | Office Equipment | 141 | $2,800 | |
Cash | 101 | $2,800 | ||
(To record the purchase of equipment on cash) | ||||
December 10 | 111 | $3,200 | ||
Fees Income | 401 | $3,200 | ||
(To record the service provided on account) | ||||
December 11 | Office supplies | 121 | $1,050 | |
Cash | 101 | $1,050 | ||
(To record the purchase of supplies in cash) | ||||
December 15 | Accounts payable | 202 | $7,500 | |
Cash | 101 | $7,500 | ||
(To record the payment of invoice for furniture purchased) |
Table (2)
General ledger:
General ledger is a record of all accounts of assets, liabilities, and
GENERAL LEDGER | ||||||
ACCOUNT: Cash | Account No.: 101 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
December 3 | J1 | $ 25,000 | $ 25,000 | |||
December 4 | J2 | $ 2,500 | $ 22,500 | |||
December 6 | J2 | $ 2,800 | $ 19,700 | |||
December 11 | J2 | $ 1,050 | $ 18,650 | |||
December 15 | J2 | $ 7,500 | $ 11,150 | |||
ACCOUNT: Accounts receivable | Account No.: 111 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
December 10 | J2 | $ 3,200 | $ 3,200 | |||
ACCOUNT: Office Supplies | Account No.: 121 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
December 11 | J2 | $ 1,050 | $ 1,050 | |||
ACCOUNT: Computers | Account No.: 131 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
December 4 | J2 | $ 2,500 | $ 2,500 | |||
ACCOUNT: Office Equipment | Account No.: 141 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
December 6 | J2 | $ 2,800 | $ 2,800 | |||
ACCOUNT: Furnitures and fixtures | Account No.: 151 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
December 5 | J2 | $ 7,500 | $ 7,500 |
Table (3)
GENERAL LEDGER | ||||||
ACCOUNT: Accounts payable | Account No.: 202 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
December 5 | J2 | $ 7,500 | $ 7,500 | |||
December 15 | J2 | $ 7,500 | $ 0 | |||
ACCOUNT: CW Capital | Account No.: 301 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
December 3 | J1 | $ 25,000 | $ 25,000 | |||
ACCOUNT: Fees Income | Account No.: 401 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
December 10 | J2 | $ 3,200 | $ 3,200 |
Table (4)
The Account 202 is the Accounts payable Account. It was credited for the purchase on December 5th for $7,500 and it was debited on December 15th for $7,500, and there is no balance in the account on the end of the month.
Want to see more full solutions like this?
Chapter 4 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
- MCQarrow_forwardKitty Manufacturing has the following data: Beginning Finished Goods Inventory = $10,200 Raw Material Purchases = $22,500 Cost of Goods Manufactured = $33,000 Ending Finished Goods Inventory = $12,300 What is the cost of goods sold for Kitty Manufacturing? Answer pleasearrow_forwardprovide correct answerarrow_forward
- Accurate answerarrow_forwardABC is an all-equity firm that has 44,200 shares of stock outstanding at a market price of $14.70 per share. The firm is considering a capital structure with 53% debt at a rate of 5% and use the proceeds to repurchase shares. Determine the shares outstanding once the debt is issued. Provide Answerarrow_forwardFinancial Accounting Question please need answerarrow_forward
- Hii expert please provide correct answerarrow_forwardSierra Adventures has a net income of $3 million this year. The book value of Sierra Adventures' common equity is $12 million. The company's dividend payout ratio is 50% and is expected to remain this way. What is Sierra Adventures' internal growth rate? answerarrow_forwardanswer plz mearrow_forward
- Please find the correct answerarrow_forwardWhat are the total manufacturing costs for fenix publishing?arrow_forwardPinakin Inc. has sales of $680,000 and costs of $305,000. Interest expense is $25,000 and depreciation is $53,000. The tax rate is 37%. What is the net income? Don't Use Aiarrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeFinancial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubIndividual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)