Question

Concord Repair Shop had the following transactions during the first month of business as a proprietorship. Journalize the transactions.

Aug. 2		Invested $12,320 cash and $2,710 of equipment in the business.
7		Purchased supplies on account for $480. (Debit asset account.)
12		Performed services for clients, for which $1,193 was collected in cash and $722 was billed to the clients.
15		Paid August rent $580.
19		Counted supplies and determined that only $296 of the supplies purchased on August 7 are still on hand

Answer 1

Journal entry :

Date	accounts & explanation	debit	credit
Aug 2	Cash a/c	12320
	Equipment	2710
	Owner's capital a/c		15030
	(To record investment in bussiness)
Aug 7	Supplies assets a/c	480
	Account payable a/c		480
	(To record supplies account)
Aug 12	Cash a/c	1193
	Account receivable	722
	Service revenue a/c		1915
	(To record performed service)
Aug 15	Rent expenses	580
	Cash a/c		580
	(To record rent expenses paid)
Aug 19	supplies expenses a/c	184
	Supplies assets a/c		184
	(To record supplies expenses)