Question

Journalize these accounting transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (a) Stockholders invested $12,000 in the business in exchange for common stock. (b) Insurance of $800 is paid for the year. (c) Supplies of $1,800 are purchased on account. (d) Cash of $7,500 is received for services rendered

Answer 1

a. Accounts and explanation debit credit

cash $12,000

common stock $12,000

b. Accounts and explanation debit credit

insurance expenses $800

cash $800

c. Accounts and explanation debit credit

supplies $1,800

accounts payable $1,800

d. Accounts and explanation debit credit

cash $7,500

service revenue $7,500

Step-by-step explanation:

a. stock is issued for cash

b. paid 1 year insurance policy

c. purchased supplies on account

d. received cash for service rendered