Question

Question 1 Selected transactions for Blue Spruce Company during its first month in business are presented below. Sept. 1 5 25 30 Invested $10,000 cash in the business. Purchased equipment for $11,000 paying $4,100 in cash and the balance on account. Paid $2,800 cash on balance owed for equipment. Withdrew $700 cash for personal use. Spruce's chart of accounts shows No. 101 Cash, No. 157 Equipment, No. 201 Accounts Payable, No. 301 Owner's Capital, and No. 306 Owner's Drawings. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal e order presented in the problem. If no entry is required, select "No Entry" for the account cities and enter o for the amounts.) Date Account Titles and Explanation Debit Credit

Answer 1

(a)

Journalize the transaction as follows:

Date	Account Title	Debit	Credit
Sept. 01	Cash	$10,000
	Owner's capital		$10,000
Sept. 05	Equipment	$11,000
	Cash		$4,100
	Accounts payable		$6,900
Sept. 25	Accounts payable	$2,800
	Cash		$2,800
Sep. 30	Owner's drawings	$700
	Cash		$700

________________________________________________________________

Post the entries in t-accounts as follows:

Cash
Sept. 01	$10,000	Sept. 05	$4,100
		Sept. 25	$2,800
		Sept. 30	$700
End. Bal.	$2,400
Equipment
Sept. 05	$11,000
End. Bal.	$11,000
Accounts payable
Sept. 25	$2,800	Sept. 05	$6,900
		End. Bal.	$4,100
Owner's capital
		Sept. 01	$10,000
		End. Bal.	$10,000
Owner's drawings
Sept. 30	$700
End. Bal.	$700

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