Question

Q1- Provide an example of each title here and then record the journal entries .

Following is the first given answer.

1-Purchasing Equipment for cash

Given answer:

ABC company purchased equipment for SAR20,000 cash .

Equipment 20,000

Cash                   20,000

2-Issuing common stocks receiving cash.

3-Providing service receiving cash.

4-Purchasing supplies on credit.

5-Borrowing money from a bank.

6-Paying employees their salaries.

Answer 1

2) XYZ company issued 1000 common stock of $10 each at par value for cash:

Cash a/c Dr. $10000

To Common stock a/c $10000

3) ABZ company provides services & recieves $11000 cash as payment for the services provided:

Cash a/c Dr. $11000

To service revenue a/c $11000

4) Johnson Co. Purchased supplies worth $70000 on credit:

Supplies a/c Dr. $70000

To Accounts Payable a/c $70000

5) SDZ co. borrowed loan from Citibank worth $1000000 at an interest rate of 8℅ p.a. for a period of 5 years.

Bank a/c Dr. $1000000

To loan from Bank a/c $1000000

6) ABC co. Paid salaries worth $100000 to its employees by cash :

Salaries a/c Dr. $100000

To Cash a/c $100000