Question

urnal form. Voer Question #1 (25 points) - if you need additonal space, use page 3. instructions: Journalize the following business transactions in general journal in transaction by number. You may omit explanations of the transactions. M. Acher invests $90.000 cash to start the business. Purchased three pieces of equipment for $175,000, paying $70,000 cash and signing year, 10% note for the remainder. Purchased $5,000 supplies on credit Cash revenue amounted to $7,000. Paid $500 cash for radio advertising used this month. Paid $1,000 on account for supplies purchased in transa Owner withdrew $2,500 from the business for personal expenses. aid $1,200 cash for rent for the current month. eceived $2,000 cash advance from a customer for future copying. ed a customer for $750 for photocopy work done.

Answer 1

Answer:

	Account title and Explanation	Debit	Credit
1	Cash	$90,000
	M.Acher, Capital		$90,000
	[To record investment in business]
2	Equipment	$175,000
	Cash		$70,000
	Notes payable		$105,000
	[To record purchase of equipment]
3	Supplies	$5,000
	Accounts payable		$5,000
	[To record purchase of supplies on account]
4	Cash	$7,000
	Revenue		$7,000
	[To record cash revenues]
5	Advertising expense	$500
	Cash		$500
	[To record payment of advertising expense]
6	Accounts payable	$1,000
	Cash		$1,000
	[To record cash paid for accounts payable]
7	M.Acher, Withdrawals	$2,500
	Cash		$2,500
	[To record cash withdrawals for personal use]
8	Rent expense	$1,200
	Cash		$1,200
	[To record payment of rent expense]
9	Cash	$2,000
	Unearned revenue		$2,000
	[To record cash received in advance]
10	Unearned revenue	$750
	Revenue		$750
	[To record revenue from unearned]