On January 27, 2019, provides $1,200 in services to a customer who asks to be billed for the services.On January 23, 2019, received cash payment in full from the customer on the January 10 transaction.On January 20, 2019, paid $3,600 cash in salaries expense to employees.On January 18, 2019, paid in full, with cash, for the equipment purchase on January 5.On January 17, 2019, receives $2,800 cash from a customer for services rendered.On January 14, 2019, distributed $100 cash in dividends to stockholders.On January 12, 2019, pays a $300 utility bill with cash.On January 10, 2019, provides $5,500 in services to a customer who asks to be billed for the services.On January 9, 2019, receives $4,000 cash in advance from a customer for services not yet rendered.On January 5, 2019, purchases equipment on account for $3,500, payment due within the month.On January 3, 2019, issues $20,000 shares of common stock for cash.More detail for each of these transactions is provided, along with a few new transactions. Some of the listed transactions have been ones we have seen throughout this chapter. We will analyze and record each of the transactions for her business and discuss how this impacts the financial statements. We now return to our company example of Printing Plus, Lynn Sanders’ printing service company. Let’s now look at a few transactions from Printing Plus and record their journal entries. There is a date of April 1, 2018, the debit account titles are listed first with Cash and Supplies, the credit account title of Common Stock is indented after the debit account titles, there are at least one debit and one credit, the debit amounts equal the credit amount, and there is a short description of the transaction. Notice that for this entry, the rules for recording journal entries have been followed. A compound entry is when there is more than one account listed under the debit and/or credit column of a journal entry (as seen in the following). Note that this example has only one debit account and one credit account, which is considered a simple entry. It is not taken from previous examples but is intended to stand alone. Skip a space after the description before starting the next journal entry.Īn example journal entry format is as follows.You will write a short description after each journal entry.The dollar value of the debits must equal the dollar value of the credits or else the equation will go out of balance.You will always have at least one credit (possibly more).You will have at least one debit (possibly more).
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