Question

equirement 1. Post the journal entries to the​ T-accounts. Use the dates as posting references in the​ T-accounts. We will post to the accounts one transaction at a time. Begin by posting the event from the 2nd. Received $ 14 comma 000 contribution from Brett Lawrence​, ​owner, in exchange for capital. ​(We will post to the accounts one transaction at a time. Post only the transaction from July 2 in this​ step.)

Answer 1

To post the journal entry for the transaction on July 2, where the owner contributed $14,000, debit the cash account and credit the owner's equity account in the T-accounts.

Step-by-step explanation:

The student is asking how to post a journal entry to a T-account for a business transaction that occurred on July 2, wherein Brett Lawrence contributed $14,000 to the business in exchange for capital. This transaction will impact the balance sheet by increasing both the business's assets and owner's equity. To post the transaction on the T-account, you would debit the Cash account (asset) and credit the Brett Lawrence, Capital account (owner's equity) to record the owner’s contribution.

Journal Entry:

Debit: Cash $14,000 (to record the increase in assets due to the owner's contribution)

Credit: Brett Lawrence, Capital $14,000 (to record the increase in owner's equity)

After this transaction, the business’s T-account would show a balance of $14,000 in the Cash account on the assets side and $14,000 in the Brett Lawrence, Capital account on the liabilities and equity side, reflecting the owner’s equity.

Answer 2

journal entry:

Cash 14,000 debit

Brett Lawrence Capital Account 14,000 credit

T-Accounts:

Cash

Debit Credit

14,000

Lawrence Capital Account

Debit Credit

14,000

Step-by-step explanation:

The July 2nd Transaction will be recorded following the following idea:

The company is receiving cash. Cash will be used to operate the business and therefore, is an asset. Then, the origin of the asset is the owner, Brett Lawrence. We will credit this account by the contributed amount.

This makes the journal entry balance as debit = credit

FInally the T-account will disclosure the same values, Lawrence T-account will show the credit

and cash will show the debit.