Acct. Ch. 2-Journals

Front 1

Invested 20,000 in a business in exchange for Cap. Stock?

Back 1

Cash increased (debt) 20,000

Cap. Stock decreased (credit) 20,000

Front 2

Paid 20,000 for land as a future bldg site?

Back 2

1. 20,000 increased- debit to Land

2. 20,000 decrease-credit to cash

Front 3

Purchased supplies on account for 1,350?

Back 3

1. 1,350 increase-debit to supplies

2. 1,350 increase-credit to Acct. payable

Front 4

Rec'v cash of 7,500 from customers for services provided?

Back 4

1. 7,500 increase-debt to cash

2. 7,500 increase-credit to Fees Earned

Front 5

Incurred wage exp of 200 and rent exp of 500 and utility exp of 200?

Back 5

1. An increase-debit wage, rent and utility exp

2. An decrease=credit also to cash

Front 6

Paid creditors on account of 950 ?

Back 6

1. 950 decrease-debit to Acct. payable

2. 950 decrease-credit to cash

Front 7

1,350 - 550 of supplies. The cost of supplies on hand was 550?

Back 7

1. 800 increase-debit to Supp. exp

2. 800 decrease-credit to Supplies

Front 8

Paid $2,000 of dividends to SO?

Back 8

1. $2,000 increase-debit to Dividends

2. $2,000 decrease-credit to cash

Front 9

Prepaid $2,400 for insurance to cover for one year?

Back 9

1. $2,400 increase-debit to prepaid insurance

2. $2,400 decrease-credit to cash

Front 10

Prepaid monthly rent of $800 in the end of the month?

Back 10

1. $800 increase-debit to rent exp.

2. $800 decrease-credit to Cash

Front 11

Rented my Land for 3 months for $350?

Back 11

1. $350 increase-debit to cash

2. $350 increase-credit to Unearned Rent

Front 12

Purchased $1,800 of office equipment on account?

Back 12

1. $1,800 increase-debit to Office Equip

2. $1,800 increase-credit to Acct. Payable