Question

Rosa Anderson opened a dental practice as a corporation in Spokane, Washington. The following transactions took place in August (Click the icon to view the transactions.) Using the steps outlined in the five-step transaction analysis, record the transactions in the journal. Journalize the transactions of Rosa Anderson' dental practice. (Record debits first, then credits Select the explanation on the last line of the journal entry table.) Aug 1: Sold $50,000 of common stock to Anderson to start the business Journal Entry Debit Credit Date Accounts and Explanations Aug

Answer 1

The transaction given in the question is sale of common stock to Anderson to start the business. As the common stock is increased it will be credited with $50,000 and simultaneously cash is increased by $50,000 which will be debited. The journal entry for the given transaction is shown as follows:-

Journal Entry (Amounts in $)

Date	Accounts and Explanations	Debit	Credit
Aug. 1	Cash	50,000
	Common Stock		50,000
	(To record the sale of common stock for cash)