Chapter 2 Journal Entries Example

Chapter 2 Journal Entries Example - 8. $4,000 of service...

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HINT: assets, dividends & expenses increase in debit, liabilities, equity & revenue in credit 1. Purchased $10,000 of stuff we intend to resell and paid cash - DEBIT Inventory $10,000 CREDIT Cash $10,000 2. Issued $100,000 of common stock- DEBIT Cash $100,000 CREDIT c/s $100,000 3. Paid the rent for the month of $2,000- DEBIT Rent Expense $2,000 CREDIT Cash $2,000 4. Received the phone bill of $500 but DID NOT pay it yet- DEBIT Utility Expense $500 CREDIT a/p $500 5. Purchased $5,000, on account, of stuff we intend to resell- DEBIT Inventory $5,000 CREDIT a/p $5,000 6. Borrowed $5,000 from the local bank @ 7% for 3 years- DEBIT Cash $5,000 CREDIT n/p $5,000 7. Paid $2,000 of dividends- DEBIT Dividends $2,000 CREDIT Cash $2,000
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Unformatted text preview: 8. $4,000 of service work on account- DEBIT a/r $4,000 CREDIT Sales $4,000 9. Purchased $500 of office supplies on account- DEBIT Asset $500 CREDIT a/p $500 10. Collected the money from the sale in #8- DEBIT Cash $4,000 CREDIT a/r $4,000 11. Paid the phone bill from #4- DEBIT a/p 500 CREDIT Cash $500 12. Purchased a piece of equipment (Caterpillar of course) for $12,000 cash- DEBIT Equipment $12,000 CREDIT Cash $12,000 **If you are a service firm, when you provide a service, it is service revenue or sales to you** a.) Prepare journal entries for the above transactions. b.) Prepare t-accounts for each account c.) Prepare a post closing trial balance Journal Entries Examples...
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This note was uploaded on 01/17/2012 for the course ACCT 225 taught by Professor Canace during the Fall '08 term at South Carolina.

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Chapter 2 Journal Entries Example - 8. $4,000 of service...

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