Question

Transaction Analysis:

Directions: Nally's Nook opened for business on April 1, 2018. General ledger accounts used by the business are listed below. Determine the debit and credit pieces for each transaction.

A. Cash

B. Petty Cash

C. Accounts Receivable

D. Supplies

E. Office Furniture

F. Accounts payable

G. R. Nally, Capital

H. R. Nally, Drawing

I. Fees income

J. Miscellaneous Expense

K. Rent Expense

L. Repairs Expense

M. Utilities expense

Date (April)	Transaction	Debit	Credit
1	R. Nally, the owner, invested $ 45,000.00 cash in the business
1	Wrote a check to pay for the May rent, $900.00
2	Purchased office furniture for $ 8,500.00. Wrote a check for $ 6,000.00 . Balance was paid on account.
3	Paid cash for supplies, $250.00
6	purchased supplies for $125 on credit.
9	paid $ 150 to repairs for the copy machine
10	Paid $350 to Westar energy for the electric bill
11	wrote a check to R. Nally, the owner for personal expenses.
12	Paid $250.00 to establish a petty cash fund
13	recorded a bank service charge of $25.00
15	paid cash to replenish the petty cash fund, $75; supplies $25; Miscllaneous Expenses, $50.

***How can you record the actions made on each account as debit or credit?

Answer 1

Record entries as follows:

Date	General Journal	Debit	Credit
April		$45,000
1	Cash		$45,000
	Capital, R.nally
1	Rent expense	$900
	Cash		$900
2	Office furniture	$8,500
	Cash		$6,000
	Accounts payable		$2,500
3	Supplies	$250
	Cash		$250
6	Supplies	$125
	Accounts payable		$125
9	Repair expense	$150
	Cash		$150
10	Utilities expense	$350
	Cash		$350
11	R. Nally, drawings
	Cash
12	Petty cash	$250
	Cash		$250
13	Miscellaneous expense	$25
	Cash		$25
15	Petty cash	$75
	Supplies	$25
	Miscellaneous expense	$50
	Cash		$150