Question

Selected transactions for A. Mane, an interior decorator, in her first month of business, are as follows.

Jan. 2 Invested $13,100 cash in business.
3 Purchased used car for $3,930 cash for use in business.
9 Purchased supplies on account for $655.
11 Billed customers $3,144 for services performed.
16 Paid $459 cash for advertising.
20 Received $917 cash from customers billed on January 11.
23 Paid creditor $393 cash on balance owed.
28 Withdrew $1,310 cash for personal use by owner.

Required:
Journalize the transactions.

Answer 1

Please see below

Step-by-step explanation:

Jan 2.

Dr Cash $13,100

Cr Owner equity $13,100

(Being owner's capital contribution to the business in form of cash)

Jan 3.

Dr Vehicle $3,930

Cr Cash. $3,930

(To record the purchase of used car in form of cash)

Jan 9

Dr Supplies. $655

Cr. Accounts payable $655

(To record supplies purchased on account )

Jan 16

Dr Account receivable $3,144

Cr Revenue $3,144

(Being the record of revenue earned on credit)

Jan 16

Dr Advertising expenses $459

Cr Cash $459

(Being the record of advertising expenses paid in cash)

Jan 20

Dr Cash. $917

Cr Account receivable $917

(Being the record of partial collection receivables)

Jan 23

Dr Account payables $393

Cr Cash $393

(Being the record of payment made to creditors)

Jan 28

Dr. Owner equity $1,310

Cr. Cash $1,310

(To record owner's withdrawal of capital in form of cash)