Question

Pronghorn Repair Shop had the following transactions during the first month of business as a proprietorship. Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually).

Aug. 2 Invested $12,100 cash and $2,690 of equipment in the business.
7 Purchased supplies on account for $550. (Debit asset account).
12 Performed services for clients, for which $1,180 was collected in cash and
$682 was billed to the clients.
15 Paid August rent $622.
19 Counted supplies and determined that only $295 of the supplies purchased
on August 7 are still on hand.
Date Account Titles and Explanation Debit Credit

Answer 1

Date Account Details and Description Debit Credit

Aug. 2 Cash $12,100

Equipment $2,690

Owner's Capital $14,790

Date Account Details and Description Debit Credit

Aug. 7 Supplies $550

Accounts Payable $550

Date Account Details and Description Debit Credit

Aug. 12 Cash $1,180

Accounts receivable $682

Service revenue $1,862

Date Account Details and Description Debit Credit

Aug. 15 Rent expense $622

Cash $622

Date Account Details and Description Debit Credit

Aug 19 Supplies expense (550 - 295) $255

Supplies $255