E 2-3

E 2-3

Date		Analysis of Transactions and Journal Entries
Dec.	5	The asset Office Furniture is increased; therefore, debit Office Furniture.
		The liability Accounts Payable is increased; therefore, credit Accounts Payable.
		Office Furniture………………………….	800
		Accounts Payable…………………….		800
	10	The asset Accounts Receivable is increased; therefore, debit Accounts Receivable.
		The revenue Service Revenue is increased; therefore, credit Service Revenue.
		Accounts Receivable.................................	1,600
		Service Revenue...................................		1,600
	12	The asset Cash is increased; therefore, debit Cash.
		The liability Note Payable is increased; therefore, credit Note Payable.
		Cash……………………………………...	7,000
		Note Payable………………………….		7,000
	19	The asset Cash is increased; therefore, debit Cash.
		The asset Land is decreased; therefore, credit Land.
		Cash...........................................................	29,000
		Land…………………………………..		29,000
	24	The asset Building is increased; therefore, debit Building.
		The liability Note Payable is increased; therefore, credit Note Payable.
		Building.....................................................	140,000
		Note Payable.........................................		140,000
	27	The liability Accounts Payable is decreased; therefore, debit Accounts Payable.
		The asset Cash is decreased; therefore, credit Cash.
		Accounts Payable......................................	800
		Cash......................................................		800

(10-15 min.) E 2-4

Cash				Accounts Receivable
Dec. 1	6,000	Dec. 1	700	Dec. 10	1,600
12	7,000	27	800
19	29,000
Dec. 31	40,500

Office Furniture		Land
Dec. 5	800	Dec. 1	29,000	Dec. 19	29,000

Building		Accounts Payable
Dec. 24	140,000	Dec. 27	800	Dec.5	800

Notes Payable			Martha Cross, Capital
	Dec. 12	7,000		Dec. 1	35,000
	24	140,000
	Dec. 31	147,000

Service Revenue					Utilities Expense
		Dec. 10	1,600		Dec. 1	700

Total debits = Total credits

$183,600 = $183,600

(10-20 min.) E 2-5

Journal
DATE		ACCOUNTS AND EXPLANATIONS	POST. REF.	DEBIT	CREDIT
Mar.	1	Cash		55,000
		Joy Liebermann, Capital			55,000
		Investment by owner.

	2	Office Supplies		200
		Accounts Payable			200
		Purchased office supplies on acct.

	4	Building		40,000
		Cash			40,000
		Paid cash for a building.

	6	Cash		3,000
		Service Revenue			3,000
		Performed services for cash.

	9	Accounts Payable		100
		Cash			100
		Paid cash on account.

	17	Accounts Receivable		1,600
		Service Revenue			1,600
		Performed service on account.

	23	Cash		1,200
		Accounts Receivable			1,200
		Received cash on account.

	31	Salary Expense		1,200
		Rent Expense		500
		Cash			1,700
		Paid cash expenses.

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