Question

HW Scott Jameson opened a translation business on January 2, 2015 During the first month of operations, the business completed the following transactions: Jan. 2 The business received $40,000 cash from Scott Jameson, which was deposited in a business bank account entitled Jameson Translation Service. Purchased supplies, $750, and furniture, $2,800, on account. Paid January rent expense, $1,100. Performed translation services for a client and received cash, $2,250. Paid $28,000 cash to acquire land for a future office site. Translated a brochure for a client and billed the client $1,200. Paid secretary salary, $975. Paid for the furniture purchased January 3 on account. Received partial payment from client on account, $600. Translated legal documents for a client on account. $1.350. 22 Paid the water and electricity bills, $300. 29 Received $2,700 cash for translation for a client in an overseas business trans- action. 31 Paid secretary salary, $975. 31 Scott Jameson withdrew $2,000 for personal use. 3 4 7 11 15 16 18 19

Answer 1

Journals:

• · It records transactions in chronological order.
• · It referred to as the book of original entry;
• · For each transaction, the journal shows the debit and credit effects on specific accounts.
• · It discloses in one place the complete effects of a transaction.
• · It is important to use correct and specific account titles in journalizing.

Credit No. 1 Debit $ 40,000 Date Account titles and explanation Jan 2 Cash Owners Capital, Scott Jameson (To record investment of owners capital $ 40,000 2 $ 750 $ 2,800 Jan 3 Supplies Furniture Accounts Payable (To record purchase of supplies and furniture on account) $ 3,550 3 $ 1,100 Jan 3 Rent Expense Cash (To record payment of rent expense) $ 1,100 4 $ 2.250 Jan 4 Cash Service Revenue (To record service rendered for cash) $ 2,250 5 $ 28,000 Jan 7 Land Cash (To record purchase of land) $ 28,000 6 $ 1,200 Jan 11 Cash Service Revenue (To record service rendered on account) $ 1,200 7 $ 975 Jan 15 Salaries Expense Cash (To record payment of salaries expense) $ 975

8 $ 2,800 Jan 16 Accounts Payable Cash (To record payment for payables on jan 3) $ 2,800 9 $ 600 Jan 18 Cash Accounts Receivable (To record receipt of cash from customers) $ 600 10 $ 1,350 Jan 19 Accounts Receivable Service Revenue (To record service rendered on account) $ 1,350 11 $ 300 Jan 22 Utilities Expense Cash (To record payment of utilities expense for water and EB) $ 300 12 $ 2,700 Jan 29 Cash Accounts Receivable (To record receipt of cash from customers) $ 2,700 13 $ 975 Jan 31 Salaries Expense Cash (To record payment of Secretary salaries expense) $ 975 14 $ 2,000 Jan 31 Owners Withdrawals, Scott Jameson Cash (To record withdrew cash for personal use) $ 2,000

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