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Date Submitted: 06/04/2013 01:36 AM
Tutorial 2 (Recording Business Transactions) – 8 – 12/4/13
S 2-4
Req. 1
Step 1: Identify each account affected and its type.
Step 2: Determine whether each account is increased or decreased.
Step 3: Record the transaction in the journal.
| Account | Type | Increase/Decrease |
5 | Accounts receivable | Asset | Increase Dr |
| Service revenue | Owner’s equity | Increase Cr |
28 | Cash | Asset | Increase Dr |
| Accounts receivable | Asset | Decrease Cr |
Req. 1 - continued
Journal |
DATE | ACCOUNTS AND EXPLANATIONS | POST.REF. | DEBIT | CREDIT |
Jan | 5 | Accounts receivable | | 1,000 | |
| | Service revenue | | | 1,000 |
| | Performed service on account. | | | |
| | | | | |
| 28 | Cash | | 600 | |
| | Accounts receivable | | | 600 |
| | Received cash on account. | | | |
S 2-6
Req. 1
Journal |
DATE | ACCOUNTS AND EXPLANATIONS | POST.REF. | DEBIT | CREDIT |
Jan | 22 | Accounts receivable | | 8,000 | |
| | Service revenue | | | 8,000 |
| | Performed service on account. | | | |
| | | | | |
| 30 | Cash | | 7,000 | |
| | Accounts receivable | | | 7,000 |
| | Received cash on account. | | | |
| | | | | |
| 31 | Utilities expense | | 180 | |
| | Accounts payable | | | 180 |
| | Received utility bill. | | | |
| | | | | |
| 31 | Salary expense | | 2,000 | |
| | Cash | | | 2,000 |
| | Paid salary expense. | | | |
| | | | | |
| 31 | Advertising expense | | 700 | |
| | Cash | | | 700 |
| | Paid advertising expense. | | | |
S 2-7
Req. 1
Journal |
DATE | ACCOUNTS AND EXPLANATIONS | POST.REF. | DEBIT | CREDIT |
1. | | Supplies | | 3,400 | |
| | Accounts payable | | | 3,400 |
| | Purchased supplies on account. | | | |
| | | | | |
2. | | Accounts payable | | 1,700 | |
| | Cash ($3,400 ½) | | | 1,700 |
| | Paid on...