Question

Please provide suitable journal double entries for the following transactions:

1. I spend $500 of the company’s cash and buy a desk for the reception.
2. The company pays a contractor to create an app for $15,000.
3. A client buys a license to our data product for $1000 today, and we are providing him the license right now, but the client will pay us at the end of the quarter. Provide current entries and the entries when the payment is made.
4. You take a long-term loan from your bank of $10,000. The bank puts the money in your bank’s cash account. At the end of year one, you pay back the bank $2000 from the principal and interest of $100 from your bank cash account.
5. The company pays you a dividend of $5000 at the end of the year.

Answer 1

journal entry:

Note: All entry record on the basis of accural concept:

S.NoParticulars DebitCredit S500 1 Assets Cash S500 (To record purchase of office equipment) 2intengiable Assets S15,000 Cash S15,000 (To record App As an asset) 3 Client S1,000 Revenue $1,000 (To record revenue) 4 Cash S10,000 Long term borrowing S10,000 (To record long term borrowing) 5 Interest pavable S100 S2,000 Long term borowing cash $2,100 (To pay interest and long term borrowing) 6Dividend Cash S5,000 S5,000 (To record payment of dividend)