Question

1. Analyze each transaction and record it in the general journal.

July

1 $50 000 of common shares in the new company are sold for cash.

1 Purchased land and building, worth $120,000 and $240,000 respectively by borrowing all the funds from the bank on a long-term loan.

1 Paid $10,800 for the premium on a one-year insurance policy effective today.

2 Purchased $5,600 of office supplies for cash.

14 Paid an employee $1,800 for two weeks' salary.

21 Summarized and recorded the billings to customers for the first three weeks of July for storage fees earned. Billings totaled $25,000.

28 Received $22,000 from customers in partial settlement of accounts billed on the 21st.

28 Paid another $1,800 for two weeks' salary.

29 Paid the month's $600 phone bill.

30 Repaired leaking roof for $1,700 on account.

31 Paid out dividends to shareholders of $3,200.

31 Made a payment to the bank of $1,000 interest and $4,000 to pay the amount owing for the bank loan.

Answer 1