Question

Aug. 2 Invested $11,080 cash and $2,330 of equipment in the business.

7. Purchased supplies on account for $520. (Debit asset account.)
12. Performed services for clients, for which $1,343 was collected in cash and $628 was billed to the clients.
15. Paid August rent $582.
19. Counted supplies and determined that only $275 of the supplies purchased on August 7 are still on hand.

Required:
Journalize the transactions.

Answer 1

Answer and Explanation:

The journal entries are shown below:

On August 2

Cash $11,080

Equipment $2,330

To Capital $13,410

(Being Cash and equipment invested in the business)

On August 7

Supplies $520

To Accounts payable $520

(Being Purchase of supplies on account)

On August 12

Accounts Receivable $628

Cash $1,343

To Service Revenue $1,971

(Being Service revenue from clients )

On August 15

Rent expense $582

To Cash $582

(Being cash paid)

On August 19

Supplies expense ($520 - $275) $245

To Supplies $245

(Being supplies expense is recorded)