Question

and debit- BE2-5 M. Gonzales has the following transactions during August cate (a) the effect on the accounting equation and (b) the debit.crea on pages 61-65 of the textbook. Ing August of the current year. Indi- b) the debit-credit analysis illustrated Aug. Opens an office as a financial advisor, investing $8,000 m 4 Pays insurance in advance for 6 months, $1,800 cash. 16) Receives $3,600 from clients for services performed 27 Pays secretary $1,000 salary. sactions. BE2-6 Using the data in BE2-5, journalize the transactions. (You may transactions. (You may omit explanations.)
need help with BE2-6

Answer 1

Ans:

BE2-6

Aug-01	Cash	$ 8,000
	Capital account		$ 8,000
Aug-04	Prepaid insurance	$ 1,800
	Cash		$ 1,800
Aug-16	Cash	$ 3,600
	Service revenue		$ 3,600
27-Aug	Salary expense	$ 1,000
	cash		$ 1,000

Debit-Credit  Analysis

Aug. 1	The asset Cash is increased;
	the stockholders' equity account Common stock is increased
Aug . 4	The asset Prepaid insurance is increased;
	the asset Cash is decreased.
Aug. 16	The asset Cash is increased;
	the revenue Service revenue is increased
Aug. 27	The expense Salaries expense is increased;
	the asset Cash is decreased.