Question

Exercise 2-03 Selected transactions for M. Crane, an interior decorator, in her first month of business, are as follows. Jan. 2 Invested $10,700 cash in business. 3 Purchased used car for $3,210 cash for use in business. 9 Purchased supplies on account for $535. 11 Billed customers $2,568 for services performed. 16 Paid $375 cash for advertising. 20 Received $749 cash from customers billed on January 11. 23 Paid creditor $321 cash on balance owed. 28 Withdrew $1,070 cash for personal use by owner.

Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

SOLUTION

Date	Accounts titles and Explanation	Debit ($)	Credit ($)
Jan.2	Cash	10,700
	Common stock		10,700
	(Issued shares of stock for cash)
Jan.3	Vehicle or property , plant and equipment	3,210
	Cash		3,210
	(Purchased used car for cash)
Jan.9	Supplies	535
	Account payable		535
	(Purchased supplies on account)
Jan.11	Account receivable	2,568
	Service revenue		2,568
	(Billed customers for service performed)
Jan.16	Advertising expense	375
	Cash		375
	(Paid cash for advertising)
Jan.20	Cash	749
	Account receivable		749
	(Received cash from customers)
Jan.23	Account payable	321
	Cash		321
	(Paid credit or cash on balance owed)
Jan.28	Drawing	1,070
	Cash		1,070
	(Cash withdrawal for personal use)