Page > of 2 Press esc to exit full screen Accounting 2101 Ch. 2 Analyzing Transa

Question

Page > of 2 Press esc to exit full screen Accounting 2101 Ch. 2 Analyzing Transactions Assignment 2 I. Journalize each transaction below: June 1: $20,000 was invested in the business in exchange for common stock. June 1: Performed services on account, $5,000.00. June 1: Purchased supplies on account, $2,300.00 June 1: Paid cash for one year insurance policy, $4500.00 June 2: Signed a $10,000, 6 month note at a local bank, APR, 7% June 10: Received cash for services provid June 15: Received $6500 from a customer for services to be performed at a future date. June 16: Paid S1,500, an amount owed to a creditor June 22: Received $1500.00 from customer for June 1 transaction (first June 1 transaction) June 26: Earned S1000.00 from June 15 transaction ed, $2,000.00 II. Post journal entries to T-Accounts III. Prepare a trial balance to prove equality of debits and credits in the T-Accounts IV. Prepare an income statement, retained carnings statement, and a balance sheet

Explanation / Answer

Paid 1500 on account owed to a creditor means cash is paid for the creditor that was owed on account

So journal entry here will be

Accounts payable debit 1500

Cash Credit 1500

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