Activity 1: Transactions I rotustia Prepare the general journal entries to record the following transactions for the business for the month of May 2016 (ignore GST): May 1 Owner deposited 50,000 of his own money into the business' bank account. 3 Employed a part-time worker to begin work on the first Monday of next month, earning a salary of 450 per week. Purchased office supplies for 80 and a laptop for 2,500 , both on credit. Bought 8,000 worth of new inventory on credit to be sold in the shop. Paid rent of 900 . Received 2,000 cash from a client for services provided. Sold inventory for 1,750 cash, and 4,150 on credit. The inventory had cost the business 4,000 10 A short-term bank loan of 10,000 was taken out to help with some equipment purchases. Owner took home 1,500 for personal use Invoiced a client for 2,100 for services provided. Paid electricity of 412 . Paid 2,000 of accounts payable Received cash for 3,000 of accounts receivable Paid 300 principle off the loan and a further 35 interest. Office supplies used this month total 38 .

Question

Pertanyaan

Activity 1: Transactions I rotustia Prepare the general journal entries to record the following transactions for the business for the month of May 2016 (ignore GST): May 1 Owner deposited 50,000 of his own money into the business' bank account. 3 Employed a part-time worker to begin work on the first Monday of next month, earning a salary of 450 per week. Purchased office supplies for 80 and a laptop for 2,500 , both on credit. Bought 8,000 worth of new inventory on credit to be sold in the shop. Paid rent of 900 . Received 2,000 cash from a client for services provided. Sold inventory for 1,750 cash, and 4,150 on credit. The inventory had cost the business 4,000 10 A short-term bank loan of 10,000 was taken out to help with some equipment purchases. Owner took home 1,500 for personal use Invoiced a client for 2,100 for services provided. Paid electricity of 412 . Paid 2,000 of accounts payable Received cash for 3,000 of accounts receivable Paid 300 principle off the loan and a further 35 interest. Office supplies used this month total 38 .

Tampilkan lebih banyak

Answer 1

1. Debit Bank, Credit Owner's Equity: $50,000
2. Debit Office Supplies, Debit Laptop, Credit Accounts Payable: $80, $2,500
3. Debit Inventory, Credit Accounts Payable: $8,000
4. Debit Rent Expense, Credit Bank: $900
5. Debit Bank, Credit Service Revenue: $2,000
6. Debit Bank, Debit Accounts Receivable, Credit Sales Revenue: $1,750, $4,150; Debit Cost of Goods Sold, Credit Inventory: $4,000
7. Debit Bank, Credit Short-term Loan: $10,000
8. Debit Owner's Draw, Credit Bank: $1,500
9. Debit Accounts Receivable, Credit Service Revenue: $2,100
10. Debit Electricity Expense, Credit Bank: $412
11. Debit Accounts Payable, Credit Bank: $2,000
12. Debit Bank, Credit Accounts Receivable: $3,000
13. Debit Loan Principle, Debit Interest Expense, Credit Bank: $300, $35
14. Debit Office Supplies Expense, Credit Office Supplies: $38

Answer 2

1. The owner deposits $50,000 into the business bank account. This increases the bank account and the owner's equity in the business.
2. Office supplies and a laptop are purchased on credit. This increases the assets (Office Supplies and Laptop) and the liability (Accounts Payable).
3. New inventory is bought on credit. This increases the Inventory asset and Accounts Payable.
4. Rent is paid, decreasing the bank account and increasing the Rent Expense.
5. Cash is received from a client for services, increasing the bank account and recognizing Service Revenue.
6. Inventory is sold for cash and on credit. This increases the bank account and Accounts Receivable, while recognizing Sales Revenue. The cost of the inventory sold is also recorded.
7. A short-term loan is taken, increasing the bank account and recognizing a Short-term Loan liability.
8. The owner takes home $1,500, decreasing the bank account and recognizing an Owner's Draw.
9. A client is invoiced for services, increasing Accounts Receivable and recognizing Service Revenue.
10. Electricity is paid, decreasing the bank account and increasing the Electricity Expense.
11. A portion of Accounts Payable is paid, decreasing both the bank account and Accounts Payable.
12. Cash is received for Accounts Receivable, increasing the bank account and decreasing Accounts Receivable.
13. A portion of the loan principle and interest is paid, decreasing the bank account and the Loan Principle, and recognizing Interest Expense.
14. Office supplies used are recorded, decreasing the Office Supplies asset and increasing the Office Supplies Expense.

Pertanyaan

Jawaban

Penjelasan

Pertanyaan Panas lebih