Question

Prepare journal entries for each transaction and ensure that the accounting equation is still in balance.

1) Sign contract for first website design for 10,000

Assets= Liabilities + Stockholders' equity

2) Company pays off $300 accounts payable

Assets= Liabilities + Stockholders' equity

3) Company pays for and receives $600 worth of supplies

Assets= Liabilities + Stockholders' equity

4) Company acquires and receives $1,000 worth of equipment

Assets= Liabilities + Stockholders' equity

5) Order a $900 computer, to be delivered in 90 days

Assets= Liabilities + Stockholders' equity

Answer 1

Date	Accounts and Explanation	Debit	Credit
1	No Entry Needed
2	Accounts Payable A/c dr	300
	Cash A/c		300
3	Supplies A/c dr	600
	Cash A/c		600
4	Equipment A/c dr	1000
	Cash A/c		1000
5	No Entry Needed

1.

No transaction with money value.

2.

Asset (Cash) -300 = Liability (Accounts Payable) -300

3.

Asset (Supplies) +600 and Asset (Cash) -600

4.

Asset (Equipment) +1000 and Asset (CAsh) -1000

5.

No monetory transactions