# You are presented with the following transactions for J. Green, a sole proprietorship established...

## Question:

You are presented with the following transactions for J. Green, a sole proprietorship established in the month of August:

 Aug. 2 The owner, Jason Green, invested $30.100 in the business. 2 Purchased supplies on account for$470. 5 Purchased equipment for $8,600 by signing a note payable due in three months. 9 Earned service revenue of$12,900. Of this amount, $6,500 was received in cash. The balance was on the account. 14 Paid salaries of$1,000. 15 Paid Jason Green $3,700 for his personal use. 19 A customer paid$2,100 in advance for services to be provided next month. 22 Paid the balance owing for the supplies purchased on August 2. 25 Collected the $6,400 of the amount owing from the August 9 transaction. 26 Paid office expense of$2,800. 30 Paid interest of $40 on the note payable signed on August 5. Journalize the August transactions. ## Sole Proprietorship: The sole proprietorship is a business where a single person (owner) enjoys all the profit and suffers all the loss arisen in the business. The liabilities of the owner of such business is unlimited. ## Answer and Explanation: 1 Date Particular Debit$ Credit \$
August
2 Cash a/c Dr 30,100
To, Capital a/c 30,100
2 Purchase Supplies a/c Dr 470
To,  Accounts Payable a/c 470
5 Equipment a/c Dr 8,600
To, Notes Payable a/c 8,600
9 Cash a/c Dr 6,500
Accounts Receivable a/c Dr 6,400
To, Sales Revenue a/c 12,900
14 Salaries expenses a/c Dr 1,000
To,  Cash a/c 1,000
15 Drawing a/c Dr 3,700
To,  Cash a/c 3,700
19 Cash a/c Dr 2,100
To, Unearned revenue a/c 2,100
22 Accounts payable a/c Dr 470
To, Cash a/c 470
25 Cash a/c Dr 6,400
To, Accounts Receivable a/c 6,400
26 Office Expense a/c Dr 2,800
To, Cash a/c Dr 2,800
30 Interest expenses a/c Dr 40
To, Cash a/c 40