Question

Brief Exercise 2-32 (Algorithmic) Journalize Transactions Galle Inc. entered into the following transactions during January. a. January 1: Borrowed $57,000 from First Street Bank by signing a note payable. b. January 4: Purchased $25,000 of equipment for cash. C. January 6: Paid $500 to landlord for rent for January. d. January 15: Performed services for customers on account, $41,800. e. January 25: Collected $3,000 from customers for services performed in Transaction d. f. January 30: Paid salaries of $7,500 for the current month. Required: Prepare journal entries for the transactions. Jan. 1 (Record issuance of note payable) (Record purchase of equipment) 6 (Record payment of rent) 15 (Record performance of services) 25 (Record collection from customer) 30 (Record payment of salaries)

Answer 1

Answer
Journal Entries
Date	Title and explanation	Debit	Credit
Jan-01	Bank Account	$     57,000
	to Note payable account		$     57,000
	(To Record Borrowed money )
Jan-04	Equipment Account	$     25,000
	To Cash Account		$     25,000
	( To Record purchase of equipment)
Jan-06	Rent Account	$          500
	To Cash or Bank Account		$          500
	( To record rent paid )
Jan-15	Account recivable account	$     41,800
	To Service Account		$     41,800
	(To Record performed service on account)
Jan-25	Cash / Bank Account	$       3,000
	To Account receivable Account		$       3,000
	(To record collection from customer )
Jan-30	Salaries Account	$       7,500
	To Cash / bank Account		$       7,500
	( To record payment of salaries )

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