Question

Journalize these accounting transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (a) Stockholders invested $12,000 in the business in exchange for common stock. (b) Insurance of $800 is paid for the year. (c) Supplies of $1,800 are purchased on account. (d) Cash of $7,500 is received for services rendered.

Answer 1

Answer:

Journalize these accounting transactions

Explanation:

a    

Cash             12000  

Common stock  12000

b    

Insurance prepaid  800  

  Cash                     800

C    

Supplies               1800  

Account payable  1800

d    

Cash             7500  

Revenue                7500

Answer 2

Answer:

(a) Stockholders invested $12,000 in the business in exchange for common stock.

Account Title and Explanation:

Cash ( Stock holder invested cash in the business for stock)

Debit = $12000

Credit= $12000

(b) Insurance of $800 is paid for

the year.

Account Title and Explanation:

Cash( Paid Insurance for one year)

Debit= $800

Credit= $800

(c)Supplies of $1,800 are purchased on account.

Account Title and Explanation:

Supplies( Purchased supplies on Account)

Debit = $1,800

Credit = $1,800

(d) Cash of $7,500 is received for services rendered.

Account Title and Explanation:

Cash( Received cash for services rendered)

Debit = $7,500

Credit = $ 7,500

Explanation:

A journal entry is a well detailed entry or record of any transactions carried out by an organization . It is a way to keeps records of any day to day financial transactions which includes the summaries of any debts or credits carried out by an organization.

We have seven types of journal entries and they are:

a. Opening entry

b. Closing entry

c. Simple entry

d. Compound entry

e. Rectifying entry

f. Adjustment entry

g. Transfer entry