Journalize the following business transactions in general journal form. Identify

Question

Journalize the following business transactions in general journal form. Identify each transaction by number. You must give the explanations of each transaction 1. The owner, Ali, invests $100,000 in cash in starting a real estate office operating proprietorship 2. Purchased computer for $8,000 paying $4,000 in cash and balance. signed a 30-day, note payable for the 3. Paid $600 in cash for the current month's rent. 4. Purchased $800 supplies on credit. 5. Paid $800 cash on account for office supplies purchased in transaction 4. 6. Real estate commissions billed to customers amount to $2,500. 7. Received a bill from the advertising agency $600 for advertising for the current month. 8. Received cash for $2,500 from a client in payment on account for commissions billed in transaction 6. 9. Paid $1,000 cash for officer's salaries 1 10. Ali withdrew S 1500 from the business for personal expenses.

Explanation / Answer

No. Account Tittle and Explaination Debit Credit 1 Cash $ 1,00,000 Ali, Capital $ 1,00,000 (Being Capital introduced in Cash) 2 Computer $       8,000 Cash $       4,000 Note Payable $       4,000 (Being computer purchased for $8,000 and $4,000 paid in cash and for balance of $4,000 30-days note payable issued) 3 Rent expense $           600 Cash $           600 (Being current month's rent paid) 4 Office Supplies $           800 Accounts payable $           800 (Being office supplies purchased on credit) 5 Accounts payable $           800 Cash $           800 (Being payment made in cash of $800 for office supplies purchased previously) 6 Accounts receivable $       2,500 Real estate commission revenue $       2,500 (Being real estate commission billed to customer) 7 Advertising Expense $           600 Accounts payable $           600 (Being Advertising expense recorded for current month) 8 Cash $       2,500 Accounts receivable $       2,500 (Being amount received from customer $2,500 on account of Real estate commission revenue) 9 Office Salaries expense $       1,000 Cash $       1,000 (Being $1,000 paid in cash for officer's salaries) 10 Ali, Drawing $       1,500 Cash $       1,500 (Being $1,500 withdrawn by Ali for personal expenses)

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