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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.
25Collected the $6,400 of the amount owing from the August 9 transaction.
26 Paid office expense of $2,800.
30Paid 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


Learn more about this topic:

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Journal Entries and Trial Balance in Accounting

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Chapter 3 / Lesson 10
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Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples.


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