Question

Journalize the following transactions for Alan's Furniture. Explanations are not required.

a) Sold furniture for cash
b) Purchased office supplies on credit
c) Received payment for a previous sale
d) Paid rent for the storefront

Answer 1

Journalizing transactions for Alan's Furniture includes recording the sale of furniture, purchasing supplies on credit, receiving payment for a sale, and paying rent. Each entry affects different accounts, and proper journalization ensures accurate financial reporting.

Step-by-step explanation:

The main answer to journalizing the transactions for Alan's Furniture is as follows: Sold furniture for cash: Debit Cash; Credit Sales Revenue.Explanation in more than 100 words:Each transaction affects different accounts in the company's ledger. The sale of furniture increases the cash account while also recording income from sales. When office supplies are bought on credit, the business acquires supplies and simultaneously incurs a liability. Receiving payment for a sale previously made turns an accounts receivable into cash, improving liquidity. Lastly, paying rent decreases cash and records the expenditure. These entries ensure that the financial statements reflect accurate and up-to-date information in accordance with the double-entry accounting system.Conclusion:Journalizing transactions is fundamental to maintaining accurate financial records and involves debiting and crediting the appropriate accounts in line with the nature of each transaction.