Question

how do post information for a business in a general journal ?

1-Dec 1-Dec 1-Dec Began business by depositing $10500 in a bank account in the name of the company in exchange for 1050 shares of $10 per share common stock. Paid the rent for the current month, $950. Paid the premium on a one-year insurance policy. $6... 1-Dec Purchased Equipment for $3600 cash. Purchased office supplies from XYZ Company on account 5-Dec $300. 15-Dec Provided services to customers for $7200 cash. 16-Dec Provided service to customers ABC Inc. on account. $5200. 21-Dec Received $2400 cash from ABC Inc., customer on account. Paid $170 to XYZ company for supplies purchased on account on 23-Dec December 5. 28-Dec Paid wages for the period December 1 through December 28, $4480. 30-Dec Declared and paid dividend to stockholders $200.

Answer 1

Journal Entries of the given transactions are as follows:

Date: 1st December,

1. Bank Account Dr. $10,500

To issued share capital Account $10,500($1050*10stocks)

(being capital issued and bank balance maintained)

2. Rent expense account Dr. $950

To bank account $950

(being rent paid by bank for the said month)

3. Prepaid Insurance expense Account Dr. $600

To bank account $600

(being amount paid for insurance by bank, assuming 1 december to be begining of the insurance period therefore treated as prepaid)

4. Euipment(PPE) account Dr. $3,600

To cash account $3,600

(being cash paid for equipment)

Date: 5th December,

5. Office supplies account Dr. $300

To XYZ company account $300

(being offices supplies purchased on cedit from XYZ)

Date: 15th December,

6. Cash Account Dr. $7,200

To sale of service account $7,200

(being cash received on service provided to customer)

Date: 16th December,

7.   ABC Inc. account Dr. $5,200

To sale of service account $5,200

(being service provided to customer on credit)

Date: 21st December,

8. Cash Account Dr. $2,400

  ABC Inc. account $2,400

  (being cash received from ABC inc on account of credit sale on 16th december)

Date: 23rd December,

9. XYZ company account Dr. $170

To Cash Account Dr. $170

(being cash paid to ABC inc on account of credit purchase on 5th december)

Date: 28th December,

10. Wages expense account Dr. $4,480

To bank account $4,480

(being wages paid for period 1st december to 28 december through bank)

Date: 30th December,

11. Dividend account Dr. $200

To bank account $200

(being dividend declared and paid)

Note: wherever it is not explicitly provided that payment is made through cash, it is assumed that payment is made through bank. However, cash account could also be used.