In: Accounting
Exercise 2-3
Selected transactions for Tamarisk, Inc., an interior decorating firm, in its first month of business, are as follows.
Jan. 2 | Invested $16,231 cash in the business in exchange for common stock. | |
3 | Purchased used car for $8,873 cash for use in the business. | |
9 | Purchased supplies on account for $541. | |
11 | Billed customers $1,948 for services performed. | |
16 | Paid $216 cash for advertising. | |
20 | Received $844 cash from customers billed on January 11. | |
23 | Paid creditor $325 cash on balance owed. | |
28 | Declared and paid a $541 cash dividend. |
Journalize the transactions. (Credit
account titles are automatically indented when the amount is
entered. Do not indent manually. Record journal entries in the
order presented in the problem. If no entry is required, select "No
Entry" for the account titles and enter 0 for the
amounts.)
Date |
Account Titles and Explanation |
Debit |
Credit |
Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28 |
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Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28 |
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Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28 |
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Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28 |
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Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28 |
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Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28 |
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Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28 |
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Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28 |
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JOURNAL ENTRIES ÷ (Amt in $)
Date Particulars Debit Credit
Jan 2 Cash a/c dr. 16,231
To Common stock a/c 16,231
(Being cash invested in the business)
Jan 3 Car a/c dr. 8,873
To Cash a/c 8,873
(Being car purchased in cash)
Jan9 Supplies a/c dr. 541
To Account payable a/c 541
(Being supplies purchased on credit)
Jan 11 Account receivable a/c dr. 1,948
To Service revenue a/c 1,948
(Being service performed on credit)
Jan 16 Advertising a/c dr. 216
To Cash a/c 216
(Being cash paid for advertising)
Jan 20 Cash a/c dr. 844
To Account receivable a/c 844
(Being cash received for service performed)
Jan 23 Account payable a/c dr. 325
To Cash a/c 325
(Being cash paid for supplies purchased)
Jan 28 Dividends a/c dr. 541
To Cash a/c 541
(Being dividends paid in cash)