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:

a. Accounts and explanation         debit              credit

   cash                                             $12,000      

   common stock                                                   $12,000

b.  Accounts and explanation         debit              credit

    insurance expenses                    $800

    cash                                                                    $800

c. Accounts and explanation         debit              credit

   supplies                                       $1,800

   accounts payable                                              $1,800

d.  Accounts and explanation         debit              credit

    cash                                              $7,500

    service revenue                                                 $7,500

Explanation:

a. stock is issued for cash

b. paid 1 year insurance policy

c. purchased supplies on account

d. received cash for service rendered