2RECORDING BUSINESS TRANSACTIONSJournalPage 1CashApr. 2 250,000Lisa Hunter, CapitalApr. 2 250,000Owner,Owner,Assets= Liabilities +Capital−Withdrawals + Revenues −ExpensesDrCrDrCrDrCrDrCrDrCrDrCr+−−+−++−−++−Owner’s Equity+=LiabilitiesAssetsLEARNING OBJECTIVES1Define and use key accounting terms.2Apply the rules of debit and credit.3Analyze and record transactions in the journal.4Post from the journal to the ledger.5Prepare and use a trial balance.SOME USEFUL TEXT INFORMATION (add your own notes too)EXHIBIT 2–7 | Final Rules of Debit and CreditEXHIBIT 2–9 | Making a Journal Entry and Posting to the LedgerDateAccount Titles and ExplanationPost.Ref.DebitCredit2019Apr. 2Cash250,000Lisa Hunter, Capital250,000Received initial investment from owner.31M02_MILL2421_11_SE_C02.indd 117/06/19 3:49 PM
Recording Business Transactions33S2–7Jonathan 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. 1Wen invested $29,000 cash in a business bank account to start his business. The business received the cash and gave Wenowner’s equity in the business.2Purchased computer equipment on account, $9,500.3Paid cash for September’s office rent of $4,100.4Recorded $6,800 revenue for services rendered to clients on account.JournalDateAccount Titles and ExplanationsPost.Ref.DebitCreditSep.1Cash29,000Jonathan Wen, Capital29,000Received investment from owner.2Computer Equipment9,500Accounts Payable9,500Purchased supplies on account.3Rent Expense4,100Cash4,100Paid office rent for September.4Accounts Receivable6,800Service Revenue6800Performed service for clients on account.