Question

Set up a General Journal & record the following selected transactions:

JANUARY 2 Purchased a 1 year insurance policy for $600

JANUARY 3 Bought $350 supplies on credit
JANUARY 8 Paid $200 employee wages
JANUARY 12 did a $400 job for a customer on credit

JANUARY 14 paid half the amount owed for the supplies collected in full from the January 9 customer.

Answer 1

Solution

Date	General Journal	Debit	Credit
2-Jan	Prepaid insurance	$        600
	Cash		$      600
2-Jan	Supplies	$        350
	Accounts payable		$      350
8-Jan	Wages expesne	$        200
	Cash		$      200
12-Jan	Accounts receivable	$        400
	Service revenue		$      400
14-Jan	Accounts payable	$        175
	Cash		$      175
14-Jan	Cash	$        400
	Accounts receivable		$      400