How would you journalize the following? on 12/3 Robert acquired the assests and

Question

How would you journalize the following?

on 12/3 Robert acquired the assests and liabilities of another store that had closed due to death of the owner. He paid $40,000 cash and acquired the following: Equipment $18,000, Accounts recievable 20,000, and office supplies 9,000 and he assumed liability for accounts payable of 7,000.

on 12/4 paid a total of 5,200 to his landlord for the following: currents month rent 1,300, 1,300 as an advance for jan rent and 2,600 as a security deposit, which will be returned on termination of 3 year lease.

Please help!!!!

Explanation / Answer

12/3

Debit Equipment = 18000

Debit ACCOUNTS RECIEVABLE = 20000

DEBIT OFFICE SUPPLIES = 9000

CREDIT CASH = 40000

CREDIT ACCOUNTS PAYABLE = 7000

[BEINGS ASSETS DEBITED AND LIABILITY CREDITED AND CASH PAID CREDITED]

12/4

DEBIT RENT EXPENSES = 1300

DEBIT ADVANCE RENT FOR JAN = 1300

DEBIT SECURITY DEPOSIT = 2600

CREDIT[1300+1300+2600] = 5200

[BEING EXPENSE DEBITED FOR CURRENT MONTH AND ADVANCE RENT & SECURITY DEPOSIT DEBITED AS THEY ARE CURRENT ASSET TYPE AND CAH PAID CREDITED]

PLEASE DO RATE THANKS

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