Question

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.

   1.   The company issues ordinary shares in exchange for ₤25,000 cash.

   2.   Purchased ₤400 of supplies on credit.

   3.   Purchased equipment for ₤10,000, paying ₤3,000 in cash and signed a 30-day, ₤7,000, note payable.

   4.   Real estate commissions billed to clients amount to ₤4,000.

   5.   Paid ₤700 in cash for the current month's rent.

   6.   Paid ₤200 cash on account for supplies purchased in transaction 2.

   7.   Received a bill for ₤600 for advertising for the current month.

   8.   Paid ₤2,200 cash for salaries.

   9.   The company paid dividends of ₤1,200.

10.   Received a check for ₤3,000 from a client in payment on account for commissions billed in transaction

Answer 1

Transaction	General Journal	Debit	Credit
1	Cash	25,000
	Common stock		25,000
	( To record issuance of common stock)
2	Supplies	400
	Accounts payable		400
	( To record purchase of supplies on account)
3	Equipment	10,000
	Cash		3,000
	Note payable		7,000
	( To record purchase of equipment)
4	Accounts receivable	4,000
	Commission revenue		4,000
	( To record commission revenue)
5	Rent expense	700
	Cash		700
	( To record rent expense)
6	Accounts payable	200
	Cash		200
	( To record payment of accounts payable)
7	Advertisement expense	600
	Accounts payable		600
	( To record advertisement expense)
8	Salaries expense	2,200
	Cash		2,200
	( To record salaries expense)
9	Dividends	1,200
	Cash		1,200
	( To record dividends)
10	Cash	3,000
	Accounts receivable		3,000
	( To record amount received form customer)

Kindly comment if you need further assistance.

Thanks‼!