Answer to Question #101822 in Accounting for zerihun wubshet

Question

- Sept. 10 Mr. John transferred cash from his personal account to be used in the business,
- Birr 10,000.
- “ 10 Paid rent for the month, Birr 500
- “ 11 Purchased a truck for Birr 12,000 by paying Birr 3,000 Cash and giving a notes payable for the difference.
- “ 12 Purchased equipment on account Birr 1,460.
- “ 13 Purchased supplies on account Birr 240.
- “ 14 Paid insurance premiums of Birr 170 (Dr. prepaid insurance)
- “ 15 Received cash for services completed Birr 360.
- “ 16 Purchased Supplies on account Birr 240.
- “ 18 Paid salaries of Birr 900.
based on the data above Record the transactions in General Journal?

Answer 1

DATE Account Debit Credit

10-Sep Cash 10,000.00

Capital 10,000.00

To record cash transferred to business

DATE Account Debit Credit

10-Sep Rent expense 500.00

Cash 500.00

To record rent paid for the month of Sept

DATE Account Debit Credit

11-Sep Truck 12,000.00

Cash 3,000.00

Note Payable 9,000.00

To record truck purchased

DATE Account Debit Credit

12-Sep Equipment 1,460.00

Account Payable 1,460.00

To record equipment bought on credit

DATE Account Debit Credit

13-Sep Supplies expense 240

Account Payable 240

To record supplies bought on credit

DATE Account Debit Credit

14-Sep Prepaid Insurance 170

Cash 170

To record prepaid insurance premium

DATE Account Debit Credit

15-Sep Services Revenue 360

Cash 360

To record revenue received

DATE Account Debit Credit

16-Sep Supplies expense 240

Account Payable 240

To record supplies bought on credit

DATE Account Debit Credit

18-Sep Salaries Expense 900

Cash 900

To record salaries paid