ACCT1030_Horngren_workbook_ch02 Zoom practice.docx - 2 RECORDING BUSINESS TRANSACTIONS LEARNING OBJECTIVES 1 2 3 4 5 Define and use key accounting terms

ACCT1030_Horngren_workbook_ch02 Zoom practice.docx - 2...

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2 RECORDING BUSINESS TRANSACTIONS Journ al Page 1 Cash Apr. 2 2 5 0,000 Lisa Hunter, Capital Apr. 2 2 5 0,000 Owner,Owner, Assets = Liabilities + Capital− Withdrawals + Revenues Expenses Dr CrDr Cr Dr CrDr CrDr CrDr Cr +−−+−++−−++− Owner’s Equity + = Liabilitie s Assets LEARNING OBJECTIVES 1 Define and use key accounting terms. 2 Apply the rules of debit and credit. 3 Analyze and record transactions in the journal. 4 Post from the journal to the ledger. 5 Prepare and use a trial balance. SOME USEFUL TEXT INFORMATION (add your own notes too) EXHIBIT 2–7 | Final Rules of Debit and Credit EXHIBIT 2–9 | Making a Journal Entry and Posting to the Ledger Date Account Titles and Explanation Post. Ref. Debit Credit 2019 Apr. 2 Cash 250,000 Lisa Hunter, Capital 250,000 Received initial investment from owner. 31 M02_MILL2421_11_SE_C02.indd 1 17/06/19 3:49 PM
Recording Business Transactions 33 S2–7 Jonathan Wen started a business to offer development of online stores for small businesses. Record the following transactions in the journal of the business. Include an explanation with each journal entry. Sep. 1 Wen invested $29,000 cash in a business bank account to start his business. The business received the cash and gave Wen owner’s equity in the business. 2 Purchased computer equipment on account, $9,500. 3 Paid cash for September’s office rent of $4,100. 4 Recorded $6,800 revenue for services rendered to clients on account. Journal Date Account Titles and Explanations Post. Ref. Debit Credit Sep. 1 Cash 29,000 Jonathan Wen, Capital 29,000 Received investment from owner. 2 Computer Equipment 9,500 Accounts Payable 9,500 Purchased supplies on account. 3 Rent Expense 4,100 Cash 4,100 Paid office rent for September. 4 Accounts Receivable 6,800 Service Revenue 6800 Performed service for clients on account.

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