Question

Record The journal entries

1. Owner invested $10,000 and recorded ownership in the company

2. Company paid current months rent

7. Purchased merchandise to sell to customers on account from vendor Tocwick products $3,000

8. Sold to customer Mary Jones in account $1,600; cost of merchandise was $1,000

15. Paid advertising from checking $100

17. Purchased a new computer from checking $250

Answer 1

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Solution: Naming convention is not available, can be slightly different: Journal Entries Account title and explaination Cash Owner's Capital To record the intial investment in business) Rent Expense Cash To record the first month rent) Merchandise Inventory Accounts Payable - (Tocwick products) To record the purchase of merchandise on account) Accounts Receivable (Mary Jones) Sales Revenue To record the sale on account) Cost of goods sold Merchandise Inventory To record the cost of goods sold) Advertising Expense Cash To record the advertising expense) Computer equipment Cash To record the purchase of equipment) Trans Debit Credit 1) $10,000 S10,000 2) 7) $ 3,000 $ 3,000 8) $ 1,600 $ 1,600 1,000 $ 1,000 15 $ 100 $ 100 17 $250 $ 250