Question

Cynthia Reid is starting her own premium dry-cleaning business, Cyn’s Dry-Cleaning. Journalize the following transactions for her in the table below. Include brief descriptions.

1. Sep 1^st - Cynthia invests $15,000 cash into her business.
2. Sep 12^th - Cyn’s Dry-Cleaning purchases $2,000 of equipment on account.
3. Sep 13^th - Cyn’s Dry-Cleaning purchases $500 of equipment with cash.ds
4. Sep 18^th - Cyn’s Dry-Cleaning earns $1,000 cash for completing a dry-cleaning order.
5. Sep 21^st - Cyn’s Dry-Cleaning completes a $700 dry-cleaning service on account.
6. Sep 26^th - Cyn’s Dry-Cleaning pays $1,000 cash to its supplier for the Sep 12^th order.
7. Sep 29^th - Cyn’s Dry-Cleaning collects $300 from its customer for the Sep 21^st service.

Answer 1

Journal Entries
date	Explanation	debit	credit
1-Sep	cash	15000
	owner's capital		15000
	(business started with cash)
12-Sep	equipment	2000
	Accounts payable		2000
13-Sep	equipment	500
	cash		500
18-Sep	cash	1000
	service revenue		1000
21-Sep	Accounts receivables	700
	service revenue		700
26-Sep	Accounts payable	1000
	cash		1000
29-Sep	cash	300
	Accounts receivables		300