PROBLEM 1 (10%) Journalize the following business transactions in general journa

Question

PROBLEM 1   (10%)

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.

    1. Stockholders invest $50,000 cash in the business.

    2. Purchased equipment for $75,000, paying $15,000 in cash and giving a note payable for the remainder.

    3. Purchased $500 of supplies on credit.

    4. Real estate commissions billed to clients amount to $4,000

    5. Purchased 2,000 shares of common stock for the treasury at $15 per share

No.

Account Titles

Debit

Credit

1.

2.

3.

4.

5.

No.

Account Titles

Debit

Credit

Explanation / Answer

No. Accounts Titles and Explanation Debit Credit 1 Cash $50,000.00 Common Stock $50,000.00 2 Equipment $75,000.00 Bank $15,000.00 Notes Payable $60,000.00 3 Supplies $500.00 Accounts Payable $500.00 4 Accouts Receivable $4,000.00 Service Revenue $4,000.00 5 Treasury Stock $30,000.00 Cash $30,000.00

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